Ulaanbaatar Dialogue: From Peacebuilding to Artificial Intelligence www.zms.mn

The 11th Ulaanbaatar Dialogue on Northeast Asian Security opened in Mongolia's capital on Wednesday, bringing together more than 300 participants from around 40 countries and international organizations.

Launched in 2014 following an initiative proposed by Mongolia's President in 2013, the annual forum has become an important platform for dialogue on regional security, diplomacy, and cooperation.

In a video message to the conference, United Nations Under-Secretary-General Mohamed Khaled Khiari described Northeast Asia as a strategically important yet highly sensitive region. He noted that Mongolia's efforts to host the dialogue continuously for more than a decade demonstrate that even small and medium-sized countries can make meaningful contributions to regional peace and security.

Participants at this year's conference include government officials, diplomats, scholars, and policy experts from across Asia, Europe, North America, and the Middle East. Discussions are focused on a wide range of issues, including regional security challenges, preventive diplomacy, artificial intelligence, connectivity between Northeast and Central Asia, and the development of a green energy corridor.

Against a backdrop of growing geopolitical uncertainty, many participants emphasized the importance of maintaining channels for dialogue and cooperation. Mongolian Foreign Minister Battsetseg Batmunkh noted that the conference is taking place during a period of transition in the international order.

According to her, participation has increased significantly and the level of representation continues to rise. She highlighted artificial intelligence as one of the central themes of this year's dialogue, describing it as both an opportunity and a challenge.

"Participants will exchange experiences on how artificial intelligence is being used in the security sector and present their research findings. For Mongolia, this is an opportunity to learn from international experience, particularly as our legal and regulatory framework in this area remains underdeveloped," she said.

The minister also stressed the growing importance of the global energy transition. While Mongolia possesses significant natural resources and renewable energy potential, she argued that the country must become more actively involved in regional initiatives. In particular, she pointed to opportunities related to a potential green energy corridor linking China and Central Asia.

One of the conference's distinguished guests was South Korean Minister of Unification Chung Dong-young. Speaking to journalists, he praised Mongolia's contribution to peace and security through its neutral and dialogue-oriented foreign policy.

According to Chung, Northeast Asia is one of the world's most interconnected regions economically and socially, yet political and security cooperation has lagged behind. He argued that the region still lacks a sustainable mechanism capable of promoting long-term peace and trust.

"The Ulaanbaatar Dialogue is an important platform not only for Northeast Asia but also for Mongolia's neutral diplomacy. Mongolia continues to play a valuable role in promoting peace and regional stability," he said.

Chung also reaffirmed the new South Korean administration's commitment to peaceful coexistence on the Korean Peninsula. Referring to the Greater Tumen Initiative (GTI), he noted that both China and Russia have expressed support for revitalizing the regional cooperation framework and said South Korea shares that position.

Artificial intelligence emerged as one of the most widely discussed topics throughout the conference. While the technology is already transforming sectors such as education, healthcare, manufacturing, and public services, participants also highlighted growing concerns related to cybersecurity, misinformation, privacy, and governance.

Olli Ruohomäki, Senior Research Fellow at the Finnish Institute of International Affairs, argued that governments must continue learning how to regulate and utilize artificial intelligence responsibly.

"Countries need to work together to develop appropriate regulatory frameworks and learn how to use artificial intelligence effectively," he said.

Ruohomäki also pointed out that while Europe has the European Union and Southeast Asia has ASEAN, Northeast Asia lacks a similarly developed regional mechanism. In his view, the Ulaanbaatar Dialogue provides a rare opportunity for countries in the region to meet, exchange views, and strengthen mutual understanding.

Another participant, Professor Yoko Iwama of Japan's National Graduate Institute for Policy Studies, said the conference has become increasingly valuable as geopolitical tensions make communication between countries more difficult.

"This is my second time attending the Ulaanbaatar Dialogue, and I am impressed by both the diversity of participants and the quality of discussions. It is becoming increasingly difficult to communicate and travel between some countries in the region, so this forum offers an important opportunity to maintain contacts and build relationships," she said.

Iwama described the current geopolitical environment as highly challenging, particularly as the roles of major powers continue to evolve. She argued that middle powers such as Japan and South Korea, as well as smaller countries like Mongolia, have an important responsibility to support and strengthen the rules-based international order.

As global competition intensifies and new security challenges continue to emerge, this year's Ulaanbaatar Dialogue has expanded beyond traditional security issues. Discussions now encompass artificial intelligence, energy transition, regional connectivity, and diplomacy, reflecting the increasingly complex nature of security in the 21st century.

By B.Nyamsuren

ETT JSC to develop Borteeg coal deposit independently after foreign bids fall short www.gogo.mn

The Government of Mongolia has announced that the state-owned enterprise "Erdenes Tavantolgoi" (ETT) JSC will independently develop the strategic Borteeg coal deposit. The decision follows a cabinet ruling that none of the international investment proposals met the state's strict requirements. The government had previously issued an open call for international bids to invest in and develop the site, setting a submission deadline of March 23, 2026.

The bidding process drew significant interest, attracting proposals from seven domestic and foreign enterprises and consortiums. Applicants were required to submit advance payment proposals ranging from USD 500 million to USD 1 billion. Additionally, all bidders had to agree to a mandatory framework ensuring that Mongolia retains at least 51% of the project's economic benefits.

A specialized working group, led by First Deputy Prime Minister and Minister of Economy and Development J.Enkhbayar, evaluated the applications using a 1,000-point scoring system. Bidders were required to score above 700 points to qualify for final contract negotiations. Following initial evaluations and subsequent online consultations to refine the bids, three major Chinese corporations successfully advanced to the final stage: China Energy, Baowu Resources, and China Risun Group.

Despite advancing to the final stage, negotiations ultimately stalled. During the cabinet meeting, Deputy Prime Minister J.Enkhbayar confirmed that the final refined proposals from the shortlisted foreign firms failed to fully satisfy the government's criteria. J.Enkhbayar stated that while seven foreign and domestic enterprises originally submitted proposals meeting the initial 700-point threshold, their final offers did not meet specific state requirements, prompting the directive for Erdenes Tavantolgoi JSC to manage the deposit independently.

The cabinet concluded that Mongolia has successfully established sufficient domestic capacity in core mining operations, including stripping, exploration, drilling, and blasting. ETT will now partner with national subcontractors to spearhead development at Bortee, a move aimed at boosting the country's total coal exports while keeping operations entirely within the national framework.

The Borteeg deposit is a key component of the larger Tavantolgoi group, one of the world's largest untapped coking coal formations located in the Tsogttsetsii soum of Umnugovi province. The wider complex consists of six sections: Tavantolgoi, East and West Tsankhi, Ukhaa Khudag, Borteeg, Sereet, and Bayangol. The regional mining portfolio also includes the Olon-Ovoot gold deposit, located in the neighboring Mandal-Ovoo soum.

250 Years of US Independence Celebrated at Sukhbaatar Square www.montsame.mn

American Days, dedicated to the 250th anniversary of U.S. independence, were held at Sukhbaatar Square from June 6 to 7, 2026.

Opening the event, U.S. Ambassador to Mongolia Richard L. Buangan said, “As we celebrate the 250th anniversary of the Declaration of Independence, we not only reflect on the ideas of our founding fathers, but also review our cooperation with other countries such as Mongolia, and consider our nation’s diplomatic activities and global influence. The 250th anniversary is not just a reflection of the past—it is a foundation for the future.” He also emphasized that the United States is defining a new era of diplomacy that will guide the next 250 years by building new partnerships and supporting innovation.

During the event, visitors have the opportunity to explore U.S. innovations and products, as well as enjoy public activities such as cultural and artistic performances and a “Spider-Man” parade. Highlights also include an American falcon show, presentations by the Embassy and its partners, a business networking session by the American Chamber of Commerce in Mongolia (AmCham), an open training session by the Mongolian American Football Federation, and a 3x3 basketball tournament for youth under 14.

EBRD and EU support youth entrepreneurship in Mongolia www.ebrd.com

The European Bank for Reconstruction and Development (EBRD) is continuing to create growth opportunities for micro, small and medium-sized enterprises (MSMEs) in Mongolia by organising a financing facility to leading Mongolian lender XacBank.

The EBRD’s loan of up to US$ 80 million (€68 million) will be extended under the EBRD’s Youth in Business (YiB) programme in Central Asia and Mongolia, targeting MSMEs that are led or owned by individuals under the age of 35.

This project is supported by a guarantee of up to €3.45 million from the European Union (EU) under the Global Gateway – its external investment strategy for sustainable development. The loan will be complemented by advisory support and practical training for MSMEs to strengthen their operations, with a focus on innovative digital solutions and financial management. This advisory component is also supported by the EU.

According to official data, more than 60 per cent of Mongolia’s population is aged 35 or under. This young generation represents a dynamic, technically and digitally skilled workforce that will need new job opportunities in the coming years. Creating these opportunities is one of the EBRD’s strategic priorities.
The EBRD has invested more than US$ 3 billion (€2.6 billion) in Mongolia’s economy through 166 projects to date. Around 90 per cent of this funding has been used to support private-sector companies.

"Erdenes Mongol" and the IMF Discussed Cooperation in Wealth Fund Management and Corporate Governance www.open.kg

The Government of Mongolia has initiated the reorganization and expansion of the ‘Erdenes Mongolia’ association, which will become a financial institution responsible for asset management, the wealth fund, as well as conducting IPOs and privatization. This was reported by the Ulaanbaatar news portal UBN.

The General Director of ‘Erdenes Mongolia’, Davaadalai Batsuuri, met with the IMF Resident Representative in Mongolia, Tigran Poghosyan. During the discussion, the parties explored opportunities for cooperation to improve the management of the wealth fund, enhance transparency, and implement best corporate practices.

It should be noted that the IMF has previously provided advisory support to funds such as the Government Pension Fund Global from Norway, which is considered one of the most successful in the world, as well as the ‘Samruk-Kazyna’ fund of the Republic of Kazakhstan.

Unification Minister Chung Delivers Special Speech at Ulaanbaatar Dialogue www.chosun.com

Unification Minister Chung Dong-young will deliver a special speech at the 11th ‘Ulaanbaatar Northeast Asia Security Dialogue’ to be held in Ulaanbaatar, Mongolia, on the 4th.

The Ministry of Unification announced on the 3rd that Minister Chung will visit Mongolia on a three-night, four-day schedule from that day until the 6th. This marks the first time a Minister of Unification has visited Mongolia and attended the ‘Ulaanbaatar Dialogue.’

The ‘Ulaanbaatar Dialogue’ is a multilateral security dialogue in Northeast Asia hosted by the Mongolian government since 2014. It is a regular international conference that comprehensively addresses traditional and non-traditional security issues in Northeast Asia, including security, energy, and the environment. It is a 1.5-track dialogue involving government officials, academics, and representatives from international organizations within the region.

Minister Chung is scheduled to deliver a ‘special speech’ at the opening ceremony on the first day of the conference. A source from the Ministry of Unification stated, “The Mongolian government has requested participation multiple times since the beginning of the year,” adding, “During his two-day stay in Mongolia, Minister Chung Dong-young plans to hold meetings with key Mongolian government and parliamentary officials to garner support and empathy for the Korean Peninsula peace and coexistence policy and to discuss various cooperation measures with Mongolia in this regard.”

Approximately 250 participants from 25 countries have confirmed their attendance at this ‘Ulaanbaatar Dialogue.’ Whether North Korea will attend remains unknown. Mongolia is a country that has established diplomatic relations with both South and North Korea. Since establishing diplomatic ties in 1948, Mongolia and North Korea have maintained a friendly cooperative relationship as socialist states. Kim Il-sung visited Mongolia in 1956 and 1988, and Mongolian party secretaries visited North Korea in 1958 and 1986. High-level personnel exchanges between the two countries have continued, including a visit to North Korea by Mongolian President Tsakhiagiin Elbegdorj in 2013 and a visit to Mongolia by a North Korean foreign ministry delegation in March 2024.

Due to the friendly relationship between Mongolia and North Korea, there are discussions about Mongolia mediating inter-Korean and U.S.-North Korea dialogues through this ‘Ulaanbaatar Dialogue.’ This is because past U.S.-North Korea and Japan-North Korea contacts have been facilitated in Mongolia through the ‘Ulaanbaatar Dialogue.’

If North Korea attends, there is interest in whether behind-the-scenes contacts between the two Koreas and between the U.S. and North Korea could occur through the ‘Ulaanbaatar Dialogue.’ North Korea participated in the ‘Ulaanbaatar Dialogue’ from 2014 to 2018 but has not attended since 2019. In 2017, Ri Yong-pil, Deputy Director of the American Studies Research Institute at the Foreign Ministry, attended, and in 2018, Kim Yong-guk, Director of the Disarmament and Peace Research Institute at the Foreign Ministry, participated.

A source from the Ministry of Unification stated, “If there is a natural opportunity to contact the North Korean side during the ‘Ulaanbaatar Dialogue,’ we plan to use that opportunity to explain our government’s commitment to the Korean Peninsula peace and coexistence policy and to urge the necessity of inter-Korean dialogue for peace and coexistence on the Korean Peninsula.”

Central Asia and Mongolia Forecast Strongest Growth in EBRD Regions www.news.fundsforngos.org

The European Bank for Reconstruction and Development (EBRD) has projected that Central Asia and Mongolia will record the highest growth rates among its regions in 2026 and 2027. According to the latest Regional Economic Prospects report, economies in Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan are expected to grow by 5.6% in 2026, moderating slightly to 5.3% in 2027.

Resilient domestic consumption and investment continue to drive growth, with services, construction, and manufacturing emerging as key contributors. However, risks have intensified due to energy price volatility, supply-chain disruptions, sanctions, and slower growth in Russia and China, the region’s largest trading partners.

In Kazakhstan, GDP growth is forecast to moderate to 4.7% in 2026, reflecting contractions in the extractive industry after pipeline disruptions, though investment in manufacturing and energy supply remains strong. The Kyrgyz Republic is expected to grow 8.7% in 2026, supported by infrastructure and housing investment, but faces risks from new EU sanctions and higher energy costs.

Mongolia’s economy is projected to expand by 5.5% in 2026, driven by mining and agriculture, though vulnerable to China’s slowdown and rising fuel prices. Tajikistan is forecast to grow 7.9% in 2026, supported by trade, manufacturing, and hydropower investment, with remittance dependence on Russia remaining a key risk. Turkmenistan is expected to grow 6.3% in 2026, boosted by gas field expansion, though heavily reliant on Chinese demand. Uzbekistan will see growth of 6.5% in 2026, supported by remittances, wage growth, and privatization reforms, though exposed to regional inflationary pressures.

The EBRD emphasized that while growth prospects remain robust, resilience will depend on the pace of domestic reforms and diversification efforts to mitigate external shocks. Central Asia and Mongolia’s strong performance highlights their role as engines of growth within the EBRD’s regions, even amid global uncertainty.

Combed Cashmere Exports Reach USD 330 Million Under ‘White Gold’ Program www.montsame.mn

 President Khurelsukh Ukhnaa visited Khanbogd Cashmere LLC as part of the “White Gold” national movement.

Established in 1998, Khanbogd Cashmere LLC employs around 700 people. The company processes more than 1,500 tonnes of combed cashmere annually and produces over 300,000 knitted, woven, and sewn garments for domestic and international markets.

Under the “White Gold” program, the company obtained a concessional loan of MNT 65 billion and purchased 300 tonnes of raw cashmere. In addition, it has modernized its equipment, improved its production facilities, and expanded its warehouse capacity through commercial bank loans.

Last year, the company commissioned an eight-storey factory expansion and service complex with a total floor area of 6,480 square meters. Since 2024, it has met 35% of its electricity demand through solar power generation.

Company executives requested continued policy support for the implementation of the “White Gold” program and the introduction of a more flexible and preferential social insurance contribution system.

President Khurelsukh expressed appreciation to the company's employees for working closely with herders and suppliers, creating jobs, and contributing to the state budget through tax payments.

As part of the “White Gold” program, nearly 100 enterprises received concessional loans totaling MNT 520 billion last year. As a result, the spinning capacity of cashmere-processing factories increased by 400 tonnes, exceeding 2,000 tonnes. Exports of combed cashmere also increased sixfold, reaching 4,000 tonnes, equivalent to USD 330 million in export revenue.

According to the Office of the President of Mongolia, concessional loans totaling MNT 450 billion will be made available this year to enterprises operating in the cashmere sector, offering low interest rates and extended repayment periods.

Stock Exchange Indices Rise, Market Outlook Remains Positive www.montsame.mn

MONTSAME National News Agency, in cooperation with MICC Mongolia International Capital Corporation LLC, is delivering weekly updates on Mongolia’s domestic capital markets and economic developments to its readers.

Weekly Capital Market and Economic Review

(May 25–June 1, 2026)

MONGOLIAN STOCK EXCHANGE

A total of 11.42 million securities worth MNT 14.91 billion were traded on the Mongolian Stock Exchange during the past week. In terms of trading value, Golomt Bank JSC, Khan Bank JSC, Invescore NBFI JSC, MGL Aqua JSC, and APU JSC led the market. Three block trades were executed during the period:

1.9 million shares of MGL Aqua JSC (MGLA) were traded at MNT 250 per share, totaling MNT 483.7 million.
67.8 thousand shares of Invescore NBFI JSC (INV) were traded at MNT 9,500 per share, totaling MNT 644.7 million.
2.2 million shares of Golomt Bank JSC (GLMT) were traded at MNT 1,275 per share, totaling MNT 2.78 billion.

All major MSE indices closed higher last week, maintaining a positive market outlook. The TOP-20 Index rose 0.78 percent to 51,360.15 points, while the MSE A Index gained 1.72 percent, indicating stronger buying activity in large- and mid-cap stocks. The MSE B Index edged up 0.02 percent, suggesting relatively stable movements among small-cap stocks.

The performance of the indices indicates that market gains were primarily driven by highly valued and liquid stocks. The stronger performance of the MSE A Index relative to the TOP-20 suggests that investors are increasingly focusing on companies with stable financial fundamentals, while new investment inflows into the small-cap segment remain comparatively limited. Although the overall market trend remains positive, gains are not evenly distributed across all segments and continue to be selective in nature.

PROCESS TO INHERIT 1,072 SHARES OF ERDENES TAVANTOLGOI JSC AND RELATED DIVIDENDS TO COMMENCE

Pursuant to a Government resolution issued on April 29, 2026, the transfer of 1,072 shares of Erdenes Tavantolgoi JSC and the dividends attached to them to lawful heirs will begin on June 1.

The decision creates a legal framework for transferring shares and accumulated dividends belonging to shareholders of Erdenes Tavantolgoi JSC who passed away after March 31, 2011, to their lawful heirs. More than 132,000 citizens are expected to be covered by the inheritance process.

Main Steps of the Inheritance Process

Citizens may verify share ownership information by sending the deceased person's registration number in uppercase Cyrillic letters to the dedicated number 158989.
Heirs must prepare the deceased's death certificate, a reference issued by the governor of the bagh or khoroo where the deceased last resided, and a copy of the household registration booklet. Successors inheriting under Articles 520.1.2 and 520.2 of the Civil Code must obtain proof of family relations from the state registration authority in person.
Depending on their legal status as heirs, applicants must provide relevant supporting documents. Children must submit a birth certificate or birth registration extract; spouses must submit a marriage registration extract; and parents must provide registration and kinship documents. If any lawful heir declines the inheritance, a notarized waiver must be submitted, or certified by an authorized official in areas without notary services.
Once all required documents have been submitted, a notary will issue a Certificate of Inheritance Rights and register the information in the electronic notarial system in accordance with the Law on Notaries.
The Central Securities Depository will transfer and register the shares and dividends into the heir's account.

From a capital market perspective, this decision is significant for improving the shareholder registry of Erdenes Tavantolgoi JSC and transferring shares and accumulated dividends registered under deceased shareholders to their rightful owners. As a result, dividend distribution will become more inclusive, and shareholder records will be more accurate. Although the company's shares are still not tradable on the secondary market, the resolution of ownership issues represents a step toward improved corporate governance and greater transparency in shareholder registration.

ECONOMY EXPANDS BY 7.9 PERCENT AS LABOR PRODUCTIVITY IMPROVES

According to preliminary data from the National Statistics Office, Mongolia's Gross Domestic Product (GDP) increased by 7.9 percent year-on-year in the first quarter of 2026, reaching MNT 6.7 trillion at 2015 constant prices.

Mining and quarrying remained the primary driver of growth, contributing 5.0 percentage points to overall GDP expansion.

At current prices, GDP reached MNT 22.9 trillion, up 31.8 percent from the same period of the previous year. The mining sector's gross value added surged 74.2 percent, providing the main support for overall growth. The services sector also expanded by 15.8 percent, contributing to economic activity.

From the expenditure side, export growth continued to support economic expansion. Exports of goods and services increased by 44.8 percent, while net exports contributed 16.6 percentage points to GDP growth. However, gross capital formation declined by 34.2 percent, indicating relatively weaker investment activity.

Labor productivity also improved. GDP per employed person reached MNT 4.8 million in the first quarter of 2026, representing an increase of 11.4 percent compared with the same period last year. Mining remained the most productive sector, with value added per employee reaching MNT 12.9 million.

Key Indicators:

GDP (2015 constant prices): MNT 6.7 trillion (+7.9%)
GDP (current prices): MNT 22.9 trillion (+31.8%)
Mining sector growth: +33.6%
Exports of goods and services: +44.8%
GDP per employed person: MNT 4.8 million (+11.4%)
Labor productivity in mining: MNT 12.9 million (+12.9%)
While economic growth and labor productivity improvements are positive developments, the fact that much of the growth continues to be driven by mining highlights the relatively concentrated structure of the economy. For the capital market, the outlook remains supportive for mining-related companies, while weak manufacturing activity and subdued investment may result in more selective performance among stocks in other sectors.

MINERAL RESOURCES SECTOR ACCOUNTS FOR 28.6 PERCENT OF BUDGET REVENUE

According to the Ministry of Industry and Mineral Resources, the mining sector remained the principal driver of Mongolia's economic growth during the first four months of 2026.

Exports of mineral products reached USD 6.6 billion, an increase of 62.5 percent year-on-year, while mining and quarrying accounted for 84.3 percent of total industrial output.

The sector has also been a major contributor to government revenue. Consolidated budget revenue reached MNT 10.2 trillion during the first four months of 2026, up 13.8 percent, or MNT 1.2 trillion, from a year earlier.

Of this amount, revenue contributed by the mineral resources sector totaled MNT 2.9 trillion, representing an annual increase of 33.6 percent and accounting for 28.6 percent of total consolidated budget revenue. This underscores the continued dependence of public finances on the mining sector performance.

By commodity, production during the first four months of 2026 amounted to:

38.3 million tonnes of coal
797.6 thousand tonnes of copper concentrate
2.1 thousand tonnes of molybdenum concentrate
2.7 tonnes of gold
2.3 million tonnes of iron ore
1.1 million tonnes of iron ore concentrate
124.3 thousand tonnes of fluorspar ore
52.1 thousand tonnes of fluorspar concentrate
33.2 thousand tonnes of zinc concentrate
Compared with the same period last year, coal production increased by 42.3 percent, copper concentrate by 29.6 percent, iron ore by 44.4 percent, iron ore concentrate by 49.3 percent, and gold by 7.8 percent. Meanwhile, fluorspar ore production declined by 19.8 percent, and zinc concentrate output fell by 24.3 percent.

In the heavy industry sector, production totaled:

2,182.7 tonnes of cathode copper
13,252.6 tonnes of metal billets
12,259.0 tonnes of rolled metal products
Metal billet production increased by 0.4 percent and rolled metal products by 0.7 percent year-on-year, while cathode copper production declined by 16.4 percent, indicating that growth in downstream processing industries continues to lag behind the expansion of mining extraction activities.

In the petroleum sector, crude oil production reached 1.19 million barrels during the first four months of 2026, down 6.4 percent compared with the same period of the previous year. This suggests that production levels remain volatile across certain resource categories.

From a capital market perspective, the earnings outlook for mining-related companies remains positive. However, over the longer term, advances in processing industries and greater product diversification are expected to have a more significant impact on sector valuations and investor interest.

China-Mongolia Steppe Partner 2026: Chinese participating troops conduct subject demonstrations www.eng.mod.gov.cn

The Chinese troops participating in the China-Mongolia Steppe Partner 2026 joint army training conducted combat-oriented subjects demonstrations for their Mongolian counterparts at a joint training base in Inner Mongolia, China, on June 1, aiming to enhance both sides' capabilities to handle diverse missions.

These subject demonstrations serve as a concrete step to deepen the exchanges and cooperation between the two militaries. Moving forward, both sides will conduct joint planning for live-troop operations and engage in various sports competitions.