Minister of Education Reviews AI-Based English Learning Project www.montsame.mn

Minister of Education Enkh-Amgalan Luvsantseren met with representatives of the organization implementing the AI-based English language training program “EF EFEKTA” and reviewed the project’s progress and results.

The program has involved more than 10,000 participants, including over 7,000 students in grades 8–12 from general education schools in Nalaikh, Baganuur, and Bagakhangai districts, as well as vocational students, civil servants, and more than 2,000 teachers of English and information technology.

According to the 2024–2025 EF English Proficiency Index, Mongolia ranks 84th out of 116 countries, with only 5–10 percent of the population able to communicate in English. A joint study with UNICEF and the United Kingdom found that 62 percent of Mongolia’s more than 6,200 English teachers do not meet international standards, while 38 percent meet the required level.

To address this, the AI-driven “EF EFEKTA” online training program is being implemented to improve English language education in Mongolia. Participants begin by assessing their proficiency level and then follow a personalized learning path based on real evaluations. The program allows learners to study at their own pace, practice independently without fear, and develop reading, writing, speaking, and listening skills in an integrated manner. It also helps users build learning habits through the use of artificial intelligence.

The initiative supports online English lesson content in general education schools while helping to address teacher shortages, reduce workloads, and enable more creative teaching methods. Within 10 weeks of implementation, students have shown progress of three to four levels. Expanding the program nationwide is expected to significantly improve students’ English proficiency regardless of teacher availability and support their admission to international universities.

According to the Ministry of Education, the EF EFEKTA organization also offers opportunities for teachers to attend week-long training courses at English language centers with expenses covered. Officials noted during the meeting that teachers require long-term, sustainable training programs.

Mongolia Partners with EU to Modernize Public Financial Management www.eeas.europa.eu

In the framework of the Financing Agreement signed in March 2024 between the European Union and the Government of Mongolia on “Strengthening Policy and Performance-Oriented Public Financial Management Systems in Mongolia,” the Ministry of Finance of Mongolia, in partnership with the European Union (EU), has officially launched a new project to advance public financial management reforms in the country. The project will be implemented by the United Nations Development Programme (UNDP) and the World Health Organization (WHO).

The project, to be implemented from 2026 to 2029, marks a new phase in Mongolia’s public financial management reforms, focusing on stronger budget planning, more efficient and transparent public spending, domestic revenue mobilization, fiscal risk management, tax transparency, and SDG-aligned budgeting all in line with Vision 2050 and national development priorities.

H.E. Mr. Mendsaikhan Zagdjav, Minister of Finance of Mongolia, highlighted: “The Government of Mongolia and the Ministry of Finance are fully committed to taking these reforms to the next stage. Through this project, we will further strengthen budget planning, fiscal discipline, and accountability to ensure that public resources are effectively aligned with our national development priorities and deliver tangible benefits to the people of Mongolia.”

The project is funded by the European Union, and its implementation will be led by the Ministry of Finance, with UNDP serving as the lead implementing partner, in close collaboration with the Ministry of Economy and Development, the General Department of Taxation, sector ministries, and target local governments. Moreover, WHO will provide expertise in strengthening budgeting and evaluation systems in the health sector.

H.E. Ms. Ina Marčiulionytė, Ambassador of the European Union to Mongolia, emphasized: “Effective public financial management is the backbone of good governance. It ensures that public resources are allocated strategically, spent efficiently, and managed with full transparency. Ultimately, it is about building confidence - confidence of citizens in public institutions, and confidence of investors in the country’s economic management.”

The initiative builds on the achievements of the previous EU-funded “SDG-Aligned Budgeting to Transform Employment in Mongolia” programme, implemented from 2020 to 2024, which introduced important reforms in results-based planning and budgeting across central and local government institutions. 

Building on this strong foundation, the new project is expected to strengthen Mongolia’s fiscal resilience and improve the quality, transparency, and performance of public spending. Key results will include stronger medium-term budget planning and wider use of programme- and results-based budgeting across central and local government institutions, improved fiscal risk management and disclosure, enhanced domestic revenue mobilization and tax policy capacity, and stronger compliance with international tax transparency standards. The project will further support the institutionalization of SDG-aligned budgeting by piloting programme budget formulation and evaluation in selected ministries and local governments.

Ms. Matilda Dimovska, UNDP Resident Representative in Mongolia, noted: “Strong public financial management lies at the heart of sustainable development. It enables governments to translate policy priorities into tangible results for people and for the planet.”

About European Union

The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. 

About UNDP

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. 

About WHO

WHO was established on 7 April 1948 as the directing and coordinating authority in global public health within the United Nations system. Working at three levels in the Organization (global, regional and country), more than 7000 WHO staff worldwide collaborate with the governments of 194 Member States and other partners to achieve the WHO founding vision of the attainment of the highest possible level of health by all people.

Scholars Propose Using ‘Mongol’ to Refer to Mongolia www.montsame.mn

A book titled “A Study of the Name ‘Mongol’,” published by the Office of the President of Mongolia and the Secretariat of the National Security Council, was launched at the Chinggis Khaan National Museum on April 14, 2026.

Scholars at the launch noted that the work is significant in providing a foundation for further research and initiatives, with potential for continued expansion and development.

The study traces how the name “Mongol” has been recorded from its earliest appearance in historical sources through the 20th century, drawing on multilingual sources, archival documents, and maps. It compares references in Mongolian historical texts, including scripts such as traditional Mongolian, Todo, and ’Phags-pa, as well as inscriptions in Chinese characters, alongside sources in more than 10 languages, including Chinese, Japanese, Korean, Persian, and Turkic languages from the East, and English, French, Russian, German, Czech, Italian, and Spanish from the Western.

The work does not aim to explain the origin of the name “Mongol,” but rather documents how it has been transmitted across historical sources. More than 20 scholars contributed to the research, which is based on primary materials including multilingual sources, archival records, and historical maps.

One of the key findings clarifies the form of the internationally used name “Mongolia.” According to the study, the form “Mongolia” emerged in Western languages between the 17th and 18th centuries, with the Latin suffix “-ia” denoting a place—meaning “land of the Mongols.”

Based on the consistent historical usage of the original form over roughly a millennium, scholars propose that the name “Mongol” be used in line with its original form when referring to Mongolia and its citizens.

At the launch, Advisor to the President Dr. Lodoiravsal Choimaa said that Mongolians have consistently referred to themselves as “Mongol” and “Mongols,” and emphasized the importance of studying how the country has been named by other nations and how those names have evolved over time. He noted that such research helps understand how Mongolia has been perceived internationally and provides a basis for determining appropriate usage of names.

President of the National University of Mongolia and Director of the Institute for Mongol Studies Dr. Zayabaatar Dalai said the study aimed to identify how the terms “Mongol” and “Mongolia” have appeared in historical sources. The findings show that “Mongol” appeared in earlier written records, while “Mongolia” became widespread later with the addition of the Western suffix “-ia.”

People’s Teacher of Mongolia Dulam Sendenjav highlighted that the research covers sources from the 13th to 18th centuries, including various forms of Mongolian script and archival materials in multiple Eastern and Western languages. He noted that one notable component of the study is its collection of historical maps, ranging from works by early European cartographer Abraham Ortelius in the 1570s to maps from 1794 and Asian maps from 1829. These maps illustrate how the name “Mongol” was recorded over time. As many of these materials are difficult to access today, compiling them in one volume provides valuable resources for future researchers.

He added that while the name “Mongol” has generally been recorded in forms close to its original pronunciation across many languages, slight variations have persisted. However, some countries have recently begun correcting earlier mispronunciations to align more closely with the original form, a development he welcomed.

The Mongolian Mining Trap www.midstreamiq.com

Mongolia periodically attracts capital. Capital consistently disappears.

This is not a story about a small landlocked country with an unfortunate geography. It is a story about a system — one that operates wherever Chinese state capital has established infrastructure dependency before equity terms are set. Mongolia is where that system is most legible. The DRC, Indonesia, and the rare earth processing chains underpinning the AI infrastructure buildout are where it is most consequential.

Robert Friedland found the copper at Oyu Tolgoi — and understood early that China held the cards on what that copper was worth. China found something the market took longer to price: that controlling the destination of the metal is more valuable than owning the ground it comes from. Those are not competing discoveries. They are sequential ones. And the gap between them is where most institutional capital has been losing money ever since.

Over two decades, capital from Canada, Russia, Australia, the United States, and China itself has entered Mongolia’s mining sector with licenses, financing, and conviction. Most of it has left through arbitration tribunals, dissolved offshore vehicles, or write-offs that institutional compliance systems never saw coming. The pattern is consistent enough that it cannot be explained by bad luck, bad governance, or bad contracts alone.

Something structural is happening. This piece names it.

The Mechanism
China does not need to own a critical minerals asset to control its economics.

It needs to own what the asset depends on.

Railway access. Offtake destination. Processing capacity. Border throughput. By the time a Mongolian mine is producing at scale, every link in its value chain runs through a Chinese decision point — not because China seized anything, but because those dependencies were established quietly, years earlier, while everyone else was focused on the headline transaction.

China Energy’s approach to Tavan Tolgoi, one of the world’s largest coking coal deposits, illustrates this precisely. China’s largest state-owned energy enterprise did not outbid competitors or force a political outcome. It waited — for more than a decade — while successive Mongolian governments failed to develop the project through international tenders and bilateral negotiations. It waited while the railway that would move the coal was being planned, financed, and built. Then, when the infrastructure dependency was fully established and no alternative off-take route existed, it moved.

Mongolia’s parliament ratified the cross-border railway agreement in April 2025. The terms reflect a decade of patience, not a negotiation.

This is not a story about Chinese aggression. It is a story about a specific strategic capability: dependency is engineered before ownership is formalized. The equity holder gets the license. The patient capital gets the economics.

Western institutional capital has no equivalent playbook. It underwrites assets. China engineers the conditions under which assets can be monetized — or cannot.

What the Public Record Shows
The arbitration record documents what happens when outside capital enters this corridor without understanding the mechanism.

Khan Resources (Canada) — Exploration licenses for a uranium deposit cancelled by regulatory fiat. The investor assumed the license was the asset. A tribunal awarded $100 million in 2015 finding expropriation. Mongolia settled for $70 million in 2016. The mine never operated. The license was not the asset. The license was the hostage.

Paushok v. Mongolia (Russia) — A 68% windfall profit tax on gold sales above $500 per ounce destroyed investment economics overnight. The Mongolian Central Bank took physical custody of the investor’s gold and deposited it abroad. A UNCITRAL tribunal found direct breach of fair and equitable treatment. The tax was repealed — after the capital had left. Retroactive legislation moves faster than any stabilization clause you did not negotiate before the political cycle turned.

Beijing Shougang v. Mongolia (China) — A Chinese state enterprise lost its iron ore licenses and initiated arbitration under the China-Mongolia bilateral investment treaty (PCA Case 2010-20). The tribunal found it lacked jurisdiction to rule on whether an expropriation occurred — because the BIT only permitted arbitration over the amount of compensation, not the fact. A Chinese state enterprise. A bilateral treaty. No remedy. Even the most legally sophisticated capital discovers treaty architecture failures only when the dispute is live.

Three nationalities. Three mechanisms. One outcome. But these are only the cases that reached tribunals.

What Doesn’t Reach Tribunals
The more important extraction dynamic resolves quietly — through offshore holding structures, liquidation proceedings in foreign jurisdictions, and transfer pricing arrangements that never appear in any public filing.

The architecture is standard across frontier market mining investment: an offshore holding company controls an intermediate entity which owns the Mongolian-licensed operating company. The structure has legitimate uses — tax efficiency, investor protection, simplified share transfer. It also creates a vulnerability that the arbitration record cannot capture.

When an offshore-held Mongolia mining vehicle encounters financial difficulty, value distribution follows a predictable direction. Intercompany loan balances, management fee arrangements, and offtake transfer pricing determine where value has accumulated within the structure before any formal insolvency begins. By the time a winding-up proceeding is initiated, the question of what remains for equity holders — including local Mongolian partners — is often already answered.

The operating company’s mining license sits beneath this as a legally ring-fenced but functionally stranded asset. The practical outcome: a license holder attached to a producing mine, selling output at distressed prices to the only available buyer, with no leverage to renegotiate and no legal pathway to recover value lost at the holding level.

In 2024, Mongolia’s parliament added a new layer. A sovereign wealth fund law now requires the government to take a 34% non-compensated stake in any deposit designated as “strategic” — with no limitation on future designations. Every foreign-held mining asset in Mongolia now carries a latent expropriation risk activatable by parliamentary vote with no advance notice.

The legislative response was designed to address extraction. It created a new mechanism for it.

When Sophisticated Capital Loses Too
In October 2024, Trafigura — one of the world’s largest commodity trading houses — confirmed $1.1 billion in losses from its Mongolian refined oil products business. According to Trafigura’s own annual report, the alleged misconduct involved manipulation of receivables over five years — invisible to the company’s accountants in Geneva and Singapore despite operating in a market representing less than 0.3% of its total trading volume.

The mechanism was not sophisticated. The information asymmetry was.

The corridor does not discriminate by the nationality or sophistication of the capital it extracts from. Canadian miners, Russian gold investors, Chinese state enterprises, and one of the world’s most capable commodity trading houses have all paid tuition in this corridor. The common factor is not who they were. It is what they didn’t know — and when they didn’t know it.

Why Mongolia Is The Most Readable Version Of A Global System
Mongolia’s relevance to this analysis is not geographic. A landlocked country sandwiched between Russia and China will always face asymmetric dependencies — that observation requires no intelligence to make.

What makes Mongolia analytically valuable is different: it is the only place where Chinese industrial policy execution is small enough to read in full — border crossing by border crossing, offtake contract by offtake contract, parliamentary vote by parliamentary vote. What takes decades to become visible in the DRC or Indonesia is legible here in a single project cycle.

Mongolia is not the destination. It is the place where you learn to read the system before it appears somewhere that actually moves your portfolio.

The same dependency architecture — logistics control established before equity terms are set, offtake destinations determined before production begins, processing capacity controlled downstream before upstream investment is made — operates across every critical minerals corridor Chinese state capital has entered at scale.

Copper from Mongolia crosses the border into Chinese smelters on terms set years before the ore arrives. Mongolian coking coal feeds Baotou’s steel operations, which underpin the northern rare earth processing system — meaning border throughput decisions in southern Mongolia ripple directly into rare earth output schedules weeks later. REE processing is controlled so completely at the downstream stage that holding the mining license is the least leveraged position in the entire chain.

If value can be extracted before the border crossing in Mongolia, it can be extracted at every subsequent processing stage. The corridor is not the anomaly. It is the template.

Investors who cannot read the system here will not read it in the DRC, in Indonesia, or in the rare earth processing chains that underpin the AI infrastructure buildout they are currently financing.

Closing
Mongolia is not struggling to sell its mineral story. It is very good at stripping out the capital that story attracts.

The system is not broken. It is working exactly as intended.

For any investor coming into this corridor — or any corridor where Chinese state capital has locked in rail, processing, and offtake before equity arrives — the only real question is simple: are you the one extracting value, or the one being extracted from.

You cannot answer that from a standard data room or a site visit. You only see it by reading the corridor earlier in the chain — at the rail junctions, in the offtake terms, and in the holding structures — before the dependency is complete.

MSIQ uses Mongolia–China corridor experience to read how Chinese rules, railways, and processing plants turn control of the midstream into leverage over global critical minerals flows that Washington now openly treats as a strategic vulnerability.

About MSIQ

The author has spent over a decade working at the operational level of the Mongolia-China resource corridor — across mining finance, offtake negotiation, and commodities trading — with prior senior roles at international financial institutions covering Mongolian and Northern Chinese resource markets.

MSIQ does not publish from the sidelines. To discuss current corridor signals: info@midstreamiq.com

Erdenes Tavantolgoi, SAIL to Advance Coking Coal Trade www.montsame.mn

 Chief Executive Officer of Erdenes Mongol LLC Davaadalai Batsuuri has met a delegation led by Ambassador of India to Mongolia Atul Malhari Gotsurve.

During the meeting, the sides exchanged views on the progress of the oil refinery project, the pilot shipment of coking coal samples from Mongolia to India, capacity building for the group’s engineering and technical staff, and the training of future specialists. Erdenes Mongol expressed its readiness to cooperate closely with the ambassador and relevant officials to ensure the successful implementation of the refinery project.

The CEO also highlighted the importance of establishing a joint working group with India’s Steel Authority of India (SAIL), which has expressed interest in purchasing coking coal from Erdenes Tavantolgoi JSC, to explore solutions to transport and logistics challenges and deliver tangible results.

India ranks second globally in steel production, and SAIL is a leading state-owned steel producer in the country. The company uses around 17 million tons of coking coal annually, about 85 percent of which is imported from countries such as the United States, Australia, and Indonesia.

Mongolia Seeks Renewable Energy and Green Technology Ties with South Korea www.montsame.mn

According to the Ministry of Industry and Mineral Resources, Mongolia expressed its openness to cooperate with South Korea’s Hanwha Group in the fields of renewable energy and green technology and is ready to support investment in the sector.

The proposal was discussed during a meeting between the Minister of Industry and Mineral Resources, Damdinnyam Gongor, along with representatives of “Erdenes Mongol” LLC, and delegates of “Hanwha” Group.   

Minister Damdinnyam emphasized Mongolia’s goal of developing its industrial and mineral resources by shifting from extraction to processing. He outlined three potential areas of cooperation: coal processing technology, support for renewable energy, and the establishment of industrial park.  He said, “Mining projects will further focus on reducing fuel consumption by adopting green energy solutions and electrifying equipment. For example, mining companies under Erdenes Mongol LLC have been tasked with transitioning to renewable energy and electrifying their operations.”

Additionally, it was also noted that Hanwha Group is welcome to participate in the international open tender for the steel complex project to be built in Khongor soum of Darkhan-Uul aimag.

Mining Sector Remains Backbone of Economy www.montsame.mn

he MONTSAME National News Agency, in cooperation with MICC Mongolia International Capital Corporation LLC, has launched a weekly review of Mongolia’s domestic capital market and economic developments, to be published at the beginning of each week.

Weekly Capital Market and Economic Review

(2026.04.06–2026.04.12)

MONGOLIAN STOCK EXCHANGE

During the week, a total of 7.4 million securities worth MNT 6.4 billion were traded on the Mongolian Stock Exchange. Among them, Golomt Bank JSC, Khan Bank JSC, Innovation Investment JSC, Mongolian Stock Exchange JSC, and Trade and Development Bank JSC led in trading value.

During this period, a number of block trades were executed. In particular, 498,000 shares of Golomt Bank JSC (GLMT) were traded at MNT 1,245 per share, totaling MNT 620 million.

As of last week, the Mongolian Stock Exchange indices closed lower. The TOP-20 Index fell by -1.27% to 50,119.16 points, the MSE A Index declined by -0.69% to 19,005.34 points, and the MSE B Index dropped by -2.26% to 14,159.61 points. The relatively sharp decline in the MSE B Index reflects stronger selling pressure on small and mid-cap, less liquid stocks. Meanwhile, the milder decline in the MSE A Index indicates that large, actively traded companies remained relatively stable. Market movements during the week were mainly influenced by seasonal and technical factors, with no signs of deterioration in fundamental conditions.

During the period, several companies entered ex-dividend status, leading to price adjustments in line with dividend payouts. In addition, announcements of shareholders’ meetings and the opening of shareholder registration also influenced short-term investor positioning and trading activity. Dividend-related price adjustments and shifts in short-term investor behavior were the main drivers of the market’s negative weekly performance.

INFLATION RE-ACCELERATES, REACHING 7.3%

In March 2026, the Consumer Price Index (CPI) rose to 7.4%, up 1.2 percentage points from the previous month. Higher fuel prices and increased food prices mainly drove this rise.

Due to geopolitical instability in the Middle East, the prices of fuels other than AI-92 gasoline increased, putting pressure on transportation and logistics costs. At the same time, rising meat and meat product prices suggest that inflationary pressures may persist. Food prices nationwide increased by 13.9–15.2% compared to the same period last year, indicating that food dominates the inflation structure. Specifically, meat and meat products increased by 23% year-on-year, making the largest contribution to the CPI. This is likely linked to seasonal supply conditions, higher transport costs, and import-related effects.

In Ulaanbaatar, inflation also re-accelerated in March, rising by 1.5% month-on-month and 7.3% year-on-year. The main driver of inflation in the capital remained food prices, which increased by 15.3% in March—the highest level since September 2023. Experts warn that if fuel and meat price increases continue, inflation may remain elevated in the coming months.

MONGOLIA’S ECONOMIC GROWTH: STRONG EARLY-YEAR PERFORMANCE AND MEDIUM-TERM OUTLOOK

Mongolia’s economy recorded strong growth in the first two months of 2026, supported by mining sector activity and seasonal factors.

According to preliminary data from the National Statistics Office, real GDP grew by 7.6% year-on-year, driven mainly by a 32.3% increase in mining and extractive sector value added and a 4.2% increase in the services sector. Overall, the economy grew by 8.6% in January and 7.6% in February.

However, according to the World Bank’s latest Mongolia economic outlook, the rapid expansion seen in 2025 is expected to slow to around 5.0% in 2026. In the previous year, strong copper production at Oyu Tolgoi and a sharp recovery in the livestock sector following a harsh winter offset declining coal exports and weak foreign investment, bringing growth to 6.9%. This year, as these exceptional factors normalize, growth is expected to moderate.

Going forward, domestic demand and government-led projects will continue to support activity, but external risks such as geopolitical uncertainty, trade tensions, and commodity price volatility may negatively affect growth. The World Bank also noted that as major mining construction phases conclude, foreign direct investment may slow, and private investment is likely to remain limited in the near term.

Domestically, expansionary fiscal policy may support growth in the short term but could increase inflationary pressure and widen the current account deficit. This may lead to continued tight monetary policy. Under these conditions, inflation is expected to average around 8.5% in 2026.

TRADE FINANCE FORUM HELD

Mongolia’s financial sector is increasingly shifting focus from traditional loan growth toward export and trade finance, supporting foreign-exchange-earning sectors through lower-risk, flow-based financing.

In this context, Trade and Development Bank organized the “Trade Finance Forum” last week under the theme “Resource Economy,” discussing trends in natural resources, energy, and international trade finance, as well as opportunities to reduce costs. The forum focused on practical solutions to enhance clients’ competitiveness through banking products and services.

Globally, driven by technological advancement, renewable energy, and AI-based economic expansion, demand for strategic metals such as copper, lithium, and rare earth elements is expected to increase by 30–40% by 2030. While this presents opportunities for resource-rich countries, experts emphasized that finance, trade, and policy coordination will be critical to turning these opportunities into real economic gains.

For Mongolia, the mining sector remains the backbone of the economy, and there is a growing need for a more stable and efficient trade and financing system. As of 2025, Trade and Development Bank alone accounted for 32% of the banking sector’s mining-related financing, of which 60.7% was allocated to gold, 19.6% to coal, 12.3% to iron ore, and 7.4% to other minerals. This indicates gradual diversification in the financing structure. Overall, the growth of trade finance is seen as an early signal of a shift toward supporting non-mining exports through financial channels.

70–80% of cross-border railway construction to be completed this year

The construction of the cross-border railway connecting Gashuunsukhait and Ganqimaodu ports began in June 2025. This is the second cross-border railway to be built between Mongolia and China in 70 years, following the Zamiin-Uud-Erenhot railway established under the 1955 agreement between the two countries.

On March 13-14, a delegation of officials led by Minister of Road and Transport B. Delgersaikhan visited the construction site to inspect progress and oversee operations.

The cross-border railway connecting the Gashuunsukhait and Ganqimaodu ports, the main outlet for Mongolia's coal exports, is being carried out with Mongolian Railways JSC as the project owner, China Railway Construction Corporation (CRCC) as the contractor, and Tavantolgoi Railway LLC responsible for project supervision.

The government has set a goal of increasing foreign currency earnings by boosting coal exports. To ensure that the cross-border railway project proceeds without delays, Prime Minister G. Zandanshatar tasked Minister of Road and Transport B. Delgersaikhan with resolving any Mongolia-related issues on-site and overseeing the smooth continuation of construction.

The Gashuunsukhait-Ganqimaodu railway will be 32.6 km long, featuring both 1,520 mm broad-gauge and 1,435 mm standard-gauge tracks, and is designed as a freight transport network with an annual capacity of 40 million tons. Of this, 19.5 km comprises the main railway line, while the remaining sections-including single- and double-span bridges ranging from 7 to 34 meters in height, a border control center, and technological facilities-together form a comprehensive infrastructure complex.

The construction site within the border zone has been designated as a special-purpose area restricted by both countries, with official notes exchanged through the Ministry of Foreign Affairs. In addition, the temporary regulations for working in the restricted zone were reviewed by the Government of Mongolia and approved through a government resolution. Minister B. Delgersaikhan presented these regulations to the contractor's representatives during a meeting.

The CRCC corporation has requested an additional 51 billion MNT in funding for the cross-border railway project.

At the border's zero point between the two countries, where construction is actively underway, the bridge piers are already visible rising from the ground. Work has begun on the Chinese side, and according to the project design, all 34 piers on China's territory have been completed. On the Mongolian side, out of the 284 planned piers, two have been erected so far, and assembly of a third pier is currently in progress. Starting in June, cross-beam installation from the Chinese side is scheduled to begin on these piers.

A meeting between the Mongolian and Chinese sides on the progress of the cross-border railway project was held at the joint border point within the restricted border zone. Representatives from CRCC Corporation, including Project Manager Wang San Tao and the project team, attended the meeting.

"During the past period, by thoroughly preparing the construction groundwork, we have achieved 10% project completion. The year 2026 will be the peak of construction, with a target of reaching 82% completion. In 2027, we plan to complete the remaining work and operate a trial train in April," reported Kh. Purevjargal, CEO of Tavantolgoi Railway LLC.

Minister B. Delgersaikhan stated, "The government is paying special attention to the construction of the cross-border railway. The contractor has provided all necessary materials and preparations for the project, including sand, gravel, rebar, as well as geodetic and geological groundwork.

Based on the contractor's inspection and review, the government resolution granted permission to use commonly occurring minerals, such as sand and gravel, from the areas they proposed."

He said, "The most important factor is the workforce. Once visas are issued for 1,280 Chinese workers, they will be able to participate in construction on Mongolian territory. The issue of these work visas, requested by CRCC Corporation, was resolved at the government meeting on March 4, 2026. Following official approval, officers from the Immigration Agency of Mongolia's Umnugobi branch will enter the border zone to issue visas to the Chinese workers. This will ensure that construction work can continue without interruption."

The total project budget is 902 billion MNT, and the contractor has proposed a budget increase. Since the signing of the contract, factors such as fluctuations in the exchange rate, rising labor costs, and increases in the prices of other construction materials have led CRCC Corporation to request an additional 51 billion MNT. During the meeting, representatives from the Chinese side inquired about how this matter was being addressed.

In response, Minister B. Delgersaikhan said, "The Government of Mongolia has established a working group tasked with studying and deciding on adjustments to the project's financing. I lead the working group, which also includes the Ministers of Finance, Foreign Affairs, and Industry and Mineral Resources, as well as other officials. The working group has held its initial meeting and will convene a second meeting next week to present its recommendations to the government. In accordance with Mongolia's Law on Tenders, we are discussing arrangements that would allow additional costs to be paid once project completion reaches 15%."

The cross-border railway project manager, Wang San Tao, said, "On the project site, we are using high-capacity machinery and equipment that meet standard requirements. Construction is proceeding in an orderly manner according to the plan. The installation of the main structural bridge piers has been fully completed. The piers are among the most time-consuming tasks. In 2026, we will carry out the bridge construction work. Our personnel have already arrived on the Chinese side of the border. Once visas are issued, allowing them to work on Mongolian territory, we are ready to begin."

On the project site, the piers connecting the two countries have begun to be installed. Meanwhile, on the Chinese side of the border, supporting infrastructure has been put into operation to prepare for construction, including a cross-beam fabrication plant, a facility for steam-drying the cross-beams, and a yard for rebar preparation.

A total of 1,280 workers from China will participate in the project. According to the contract, Mongolian companies will handle approximately 30% of the total project work, providing temporary employment for around 300-400 Mongolian workers. At the site that will serve as a cross-border railway point, more than 30 facilities will be constructed, including worker accommodation, sanitation facilities, and a locomotive staging yard, all of which will be carried out by Mongolian companies. Currently, two Mongolian companies have already begun work.

From the pier displaying the Mongolian national flag and onward, the site lies on Mongolian territory, and construction on the Mongolian side is scheduled to begin this spring. The tallest of these piers reaches 34 meters, tapering to 7 meters at either end. To ensure the load-bearing capacity and stability of each pier, 12 piles, each 1 meter in diameter, were driven 35-41 meters deep beneath it. After proper reinforcement, on-site rebar was installed, concrete poured, and the above-ground piers erected. In other words, the foundation of each pier extends roughly 40 meters underground, making each structure approximately 70 meters in total height.

"Drilling 30-40 meters into the ground to install the pile foundations is very time-consuming. The main work carried out in 2025 was drilling, and on the Mongolian side, 60% of the 2,382 piles have been drilled. Rebar will now be installed in the drilled holes, followed by concrete pouring. In this way, last year we completed the most time-consuming key tasks," explained engineers from Tavantolgoi Railway LLC, who are supervising the project.

Mongolia exported 90 million tons of coal in 2026. Once the cross-border railway becomes operational, its throughput capacity is expected to increase, with a target of exporting 160 million tons. In particular, the Gashuunsukhait border crossing serves as the country's main coal export gateway, currently handling 40 million tons annually. When the railway is operational, transportation costs are expected to drop by 2-2.5 times, export volume is projected to increase by 30 million tons, and transport revenue is estimated to grow by $300 million.

"Even once the railway becomes operational, coal truck drivers will not be out of work. Road transport at this border crossing will continue simultaneously and without interruption," clarified Minister of Road and Transport B. Delgersaikhan.

By A. Khaliun

The Silent Demise: Mongolia’s Fight to Save the Steppe www.earth.org

As the world celebrates the International Year of Rangelands and Pastoralists, Mongolia finds itself at a crossroads. Facing a “silent demise” where 80% of its iconic steppe is degraded, the nation must now prepare to host COP17 and decide: is the solution fewer livestock, or a radical new approach to a climate-stressed landscape?

Mongolia’s rangelands are an iconic and important part of the country’s history, biodiversity and culture. They also represent some of the most important rangeland habitats in the world. Occupying 70% of Mongolia’s landmass, rangelands have always been publicly owned, and directly support the country’s critical livestock pastoralism economy which provides food, income and wealth to half of the population. 

Pastoralism, both in Mongolia and elsewhere, has a long history that intertwines with culture and civilizations. In areas where the local climate is not suitable to agriculture, pastoralism provides a reliable source of food and jobs. Responsibly managed herds serve as critical climate allies, leveraging rotational grazing to stimulate soil health and enhance the land’s capacity for carbon sequestration.

Traditional Mongolian rangeland pastoralism practices are considered resilient and adaptive, but today, they are under pressure from new threats. Mongolia’s rangelands are facing desertification caused by rangeland degradation. Nearly 80% of Mongolia’s land is degraded – double the global average. This, combined with the heavy reliance on rangeland-based pastoralist livelihoods, makes understanding and combatting rangeland degradation critical for the country’s survival.

These issues are not limited to Mongolia: rangelands cover about half of Earth’s terrestrial surface and support as many as 2 billion livelihoods. The United Nations declared 2026 the International Year of Rangelands and Pastoralists – underscoring the importance of the issue of rangeland degradation. However, rangeland degradation does not receive nearly as much attention as similar issues such as deforestation, leading some to call it a “silent demise.”

A Challenging Fight
The challenges to understanding and combatting rangeland degradation are complex. There is no universally agreed-upon definition of degradation, and scientific studies have relied on different methods of quantification of degradation, using different thresholds of vegetation change. Generally, however, it is understood that there are two primary drivers of degradation in Mongolia: overgrazing and climate change.

Overgrazing is widely recognized as a leading cause of rangeland degradation. Due to socio-economic changes during which livestock ownership was privatized in the early 1990s, the population of livestock animals in Mongolia has increased rapidly, overburdening many grazing areas with animals. Goats in particular experienced a sharp increase, coinciding with Mongolia’s cashmere export business boom under increased demand and opaque pricing methods set by manufacturers in neighboring China. It now accounts for 40% of the world’s cashmere production. This is important to note, as goats are browsers as well as grazers; they often pull out the crown of the plant or the entire root system in sandy soils, which is what prevents regrowth.

However, demand from factories and global markets is not the only factor damaging Mongolia’s landscapes. Humans have tended to large herds on the steppe for thousands of years. So, what else is affecting the ability of the land to maintain ecological equilibrium? 

A 2025 study published in Science suggests that climate change may be pushing rangelands out of balance, more than overgrazing. The study suggests that attempting to reduce overgrazing by reducing herd size may adversely impact herders’ livelihoods without tackling the root cause of degradation. Additionally, the authors suggest that traditional models often blame rising herd sizes for poor land conditions without accounting for the fact that climate-driven droughts can make even small herds appear too large for the scorched earth.

The study used climate averages and ecosystem type data to analyze and estimate the impacts of both grazing and climate stressors on rangeland health. It found that climate change-linked factors, such as warming and changes in precipitation patterns, had a greater effect than grazing pressures. The authors also discussed how herd sizes are affected by seasonality and rangeland types – herders may wish to stay in cooler mountain taiga rangelands during warm years, possibly amplifying the effects of both climate stressors and grazing stressors on these desirable areas. 

Mongolia at COP17
Understanding the causes of rangeland degradation is the first step in changing how the Mongolian government and rangeland managers create and implement policy. In the aforementioned study, the authors said, “Our findings suggest that policy levers focused on herd size alone – such as Mongolia’s livestock taxes – may have a limited effect on desired rangeland outcomes, especially at multiyear time scales.” They suggested managing different types of rangeland differently, based on how they are affected by climate change – for example, focusing more effort on areas to make them better for livestock under climate-stressed conditions, or taxing livestock in certain areas at a higher rate. 

Working to protect Mongolia’s rangelands and the ecological, cultural and societal benefits that they bring will become increasingly important as climate change accelerates and pressures from the globalized economy grow.

Whether it is through herd management, climate change mitigation or adaptation, the question of how to fight desertification will be on the table at COP17 this year in Mongolia’s capital of Ulaanbaatar. The country, which this year will take up the presidency of the UN Convention to Combat Desertification, has the opportunity to take the lead in effectively combatting degradation and protecting its natural and cultural heritage. 

BY Anna Ginsburg

Mongolia Launches Hazardous Chemicals Elimination Project with UNDP & GEF www.news.fundsforngos.org

The United Nations Development Programme (UNDP), in partnership with Mongolia’s Ministry of Food, Agriculture and Light Industry (MoFALI) and with funding from the Global Environment Facility (GEF), has launched a six-year project titled “Eliminating Hazardous Chemicals from Supply Chains in Mongolia.” The initiative aims to phase out toxic and hazardous chemicals from the country’s wool, cashmere, and leather supply chains by strengthening chemicals management systems, promoting cleaner and more resource-efficient production practices, and enhancing the global competitiveness of Mongolian products.

Bringing together government agencies, industry stakeholders, research institutions, and development partners, the project focuses on improving environmental and occupational health standards while supporting circular economy approaches, better waste and wastewater management, and sustainable industrial innovation. It is expected to reduce environmental and human health risks while boosting the resilience and value of key rural industries that support herder livelihoods and Mongolia’s light manufacturing sector.

UNDP and national partners emphasized that the initiative will help transform Mongolia’s traditional supply chains into safer, more sustainable, and internationally competitive systems, aligning environmental protection with long-term economic development goals.