Bank of Mongolia: Outlook for coal and iron ore prices remains uncertain www.gogo.mn

The Bank of Mongolia has expressed a cautious outlook for the national economy next year, highlighting potential challenges linked to slowing external demand and weakening commodity prices.
According to B.Lkhagvasuren, Governor of the Bank of Mongolia, the future balance of payments will largely depend on global mineral prices, tariff policies, and the economic performance of Mongolia’s key trading partners.
“The economic growth of our main trading partner, China, is expected to slow further. Therefore, the outlook for coal and iron ore prices is not certain” said B.Lkhagvasuren.
“At a time when export revenues are declining, it is essential to pursue an optimal combination of macroeconomic policies and reduce the current account deficit. Major construction projects should also be implemented without placing additional pressure on foreign exchange reserves.”
He added that rising geopolitical tensions, a decline in external demand, and a faster-than-expected drop in key export commodity prices could negatively affect Mongolia’s export revenues and foreign exchange inflows.
Other risk factors include potential oil supply disruptions, severe winter weather, and power outages, all of which could raise inflation and slow economic activity.
Despite these internal and external challenges, the Central Bank expects inflation to stabilize within 6 ±2 percentage points in 2026 and to gradually decline to 5% by 2027.
B.Lkhagvasuren emphasized that achieving these targets will require government support and the implementation of counter-cyclical fiscal policies to maintain economic stability.

Over 14,000 earthquakes recorded in Mongolia in 10M2025 www.qazinform.com

The Permanent Sub-Council for Earthquake Disaster Prevention of Mongolia has held its regular meeting to discuss nationwide readiness and risk management measures, Montsame reported.
Over 14,000 earthquakes recorded in Mongolia in 10M2025

The meeting reviewed the implementation of the Sub-Council’s 2025 action plan, expert assessments on the earthquake resistance and structural reliability of buildings, the progress of seismic passporting activities, and issues requiring further attention.
According to the National Emergency Management Agency (NEMA), more than 14,000 earthquakes were recorded across the country during the first ten months of 2025. Among them, 43 quakes measured between 3.5 and 5.2 magnitude, representing a 26 percent decrease compared to the same period last year.
By Arailym Temirgaliyeva

Jaap Van Hierden on the UN in Mongolia (and Vice Versa) www.thediplomat.com

Since joining the United Nations in 1961, Mongolia has been an active member of the body, reaching major milestones in contribution to the U.N. missions. Mongolia will be hosting the 17th session of the Conference of the Parties to the U.N. Convention to Combat Desertification (COP17) in 2026, which also coincide with the United Nation’s 80th anniversary. 
In recognition of the robust Mongolia-U.N. relations as the United Nations celebrates its 80th year, Bolor Lkhaajav spoke to Jaap Van Hierden, the U.N. resident coordinator in Mongolia, on climate change, climate financing, U.N. reforms, and Mongolia’s progress in implementing U.N.-led projects.  
The United Nations has been one of the main pillars of the post-World War II international system and Mongolia is proud to be an active U.N. member that ratifies and engage with many of its goals. Considering the U.N.’s 80th anniversary and possible reform, what are some of the things Mongolia must focus on, particularly in the face of erosion of democracy and increase in authoritarian governance? How can Mongolia utilize this reformative space to strengthen its democratic institutions both at home and on the international stage? 
As the U.N. approaches its 80th anniversary, Mongolia has a timely opportunity to contribute to global reform while reinforcing its democratic institutions. Strengthening judicial independence and the rule of law remains essential, and Mongolia can benefit from U.N. technical assistance to improve legal frameworks and anti-corruption efforts. Expanding civic education and youth engagement through U.N.-supported programs will help foster inclusive governance, especially with the use of digital tools for citizen participation.
Media freedom and digital governance are also key areas for Mongolia to lead by example. Collaborating with U.N. agencies to protect independent media and develop transparent digital governance frameworks will enhance democratic resilience. 
Internationally, Mongolia can continue its strong peacekeeping contributions and take on leadership roles in promoting democracy and human rights through U.N. platforms. By leveraging its “third neighbor” policy, Mongolia can build regional coalitions and host dialogues that advance democratic cooperation and innovation.
Mongolia stands as a neutral bridge in Northeast Asia, championing peace through dialogue. The Ulaanbaatar Dialogue is its signature platform that is uniting nations, fostering trust, and advancing regional stability. From peacekeeping missions to policy dialogues, Mongolia is weaving gender equality into its peace and security agenda. In doing so, it ensures that women’s voices help shape the future of conflict resolution and sustainable peace.
Mongolia and the U.N. signed “The United Nations Sustainable Development Cooperation Framework (UNSDCF 2023-2027).” How do you assess Mongolia’s implementation of these goals? What are some of the hurdles that are preventing Mongolia from fully implementing this framework? 
Mongolia’s implementation of the UNSDCF 2023–2027 has shown momentum, especially in 2023 and 2024, with over $90 million delivered by 24 U.N. agencies. However, the projected delivery for 2025 drops to around $40 million, which signals a potential slowdown unless additional resources are mobilized. Funding from key partners like the Green Climate Fund, the Adaptation Fund, the Global Environment Facility, the World Bank, the European Union, and bilateral donors such as Canada, China, Japan, Luxembourg, the Republic of Korea, and the U.K. has been instrumental in advancing UNSDCF priorities. Their role has become even more critical following the discontinuation of USAID’s operations in Mongolia.
Unfortunately, significant challenges persist. Poverty continues to affect more than a quarter of Mongolia’s population, while deep-rooted income inequality, particularly between urban and rural communities, remains a major barrier to inclusive development. 
Corruption, while being addressed, continues to erode trust and efficiency in governance. Budget credibility issues like lack of transparency are also limiting the impact of public services.
Climate shocks like the 2023–2024 dzud have strained resources, especially in rural areas where digital infrastructure and service access are limited. Mongolia’s classification as an upper-middle-income country is also shifting donor priorities away from it, as seen in reduced commitments from traditional partners.
To meet UNSDCF goals, Mongolia needs to strengthen co-financing mechanisms and improve budget execution. U.N. agencies must also work together to help close the financing gap, which remains significant.
Mongolia recently released the official logo for COP17 next year in Ulaanbaatar. What tangible outcomes should we expect from Mongolia’s hosting of such a large, timely event?
Mongolia will host the 17th session of the Conference of the Parties (COP17) to the U.N. Convention to Combat Desertification (UNCCD) in Ulaanbaatar from August 17 to 28, 2026. This major global event will bring together delegates from 197 Parties, including heads of state, ministers, scientists, civil society, and the private sector, to address the pressing challenges of desertification, land degradation, and drought. It will serve as a platform for science-policy dialogue, innovation, and financing, while fostering knowledge exchange and capacity-building.
As host, Mongolia will be able to showcase its national initiatives such as the “One Billion Trees” campaign, the “White Gold” livestock movement, and the “Food Revolution” as models of sustainable land management and climate resilience. With 2026 also marking the International Year of Rangelands and Pastoralists, COP17 will further highlight Mongolia’s leadership in rangeland management and environmental diplomacy.
The Youth4Land Forum held in Dundgobi earlier this year has set a strong precedent by empowering young people and communities to co-create land restoration solutions. 
Economically, COP17 is expected to benefit local businesses through increased demand in hospitality, transport, and services, with over 10,000 participants anticipated. It will also promote Mongolia as a unique tourist destination, generate employment across sectors, and potentially lead to lasting improvements in urban infrastructure and digital connectivity.
The successful hosting of COP17 will enhance Mongolia’s global image as a proactive and responsible environmental actor, opening doors for stronger trade, investment, and diplomatic engagement.
When discussing climate pledges, climate financing is extremely important. How are Mongolia’s leadership and institutions navigating climate financing, and how do you assess the Mongolian government’s own commitment to climate financing? 
Mongolia has integrated climate finance into its Vision 2050 national strategy, committing at least 1 percent of GDP annually to climate and desertification efforts, including the “One Billion Trees” campaign. It is strengthening institutions and regulatory frameworks to support climate finance flows and actively promotes private sector engagement through incentives and capacity building.
The National Sustainable Finance Roadmap, led by the Ministry of Finance and Bank of Mongolia, aims to raise green loans to 10 percent of total banking sector lending by 2030, with strategic actions to align financial flows with climate goals. A Green Finance Policy Division has been established to coordinate efforts, and climate-related financial disclosure guidelines have been issued to improve transparency and attract investment.
Mongolia collaborates with partners like the U.N., Green Climate Fund, ADB [Asian Development Bank], and World Bank to mobilize climate finance and technical support. Projects such as the Carbon Market Readiness initiative and the ENSURE project reflect strong political will and long-term financial planning for climate resilience.
In Mongolia, climate change is a multilayered issue that is intertwined with air pollution, energy, as well as efforts to transition to renewable energy. What are some notable U.N. projects and initiatives designed to help Mongolia to combat this complex challenge? 
To tackle the interconnected challenges of climate change, air pollution, and energy transition, the U.N. has launched several strategic initiatives in Mongolia.
A flagship effort is the Joint Program for a Just Energy Transition. It supports Mongolia’s climate goals through a national framework that integrates inclusive planning and financing, especially in health and education sectors, ensuring no one is left behind.
The Solar Facility Project in Chingeltei District replaces coal heating in ger areas with solar systems and smart meters. It supports households, tracks carbon savings, and promotes gender-responsive training and employment, thereby paving the way for market-based clean energy expansion.
In rural areas, the ADAPT Project strengthens herders’ resilience to desertification, drought, and dzud (a climate hazard unique to Mongolia) by enhancing the use of climate data, improving land and water management, and expanding market access for sustainable livestock products. These efforts directly support the objectives of the upcoming COP17 on desertification.
U.N. Mongolia also coordinated a humanitarian response to the 2023-2024 dzud, supporting people and conducting impact assessments to inform future resilience strategies. Together, these and other initiatives reflect the U.N.’s commitment to a just, inclusive, and sustainable future for all Mongolians, urban and rural alike.
You are originally from the Netherlands, where wind and solar power accounted for half of electricity generation in 2024. What can Mongolia learn from the Netherlands, particularly in its efforts to transition to renewable energy?  
The Netherlands’ success in generating almost half of its electricity from (offshore) wind and solar in 2024 offers valuable lessons for Mongolia’s renewable energy transition. Mongolia can scale up onshore wind development, leverage its vast steppes and strong wind corridors, and explore regional energy export opportunities. Dutch households and business widely adopted rooftop solar supported by subsidies and net metering. Expanding decentralized solar systems with smart meters, especially in ger districts and rural areas, would reduce coal dependency and improve energy access. In doing so, it would reduce the very serious air pollution in Ulaanbaatar and other cities.
To support this growth, Mongolia must invest in modernizing its grid infrastructure to handle variable renewables and reduce energy curtailment. Aligning renewable energy with industrial decarbonization, particularly in mining and processing, can also attract green investment. Long-term scenario planning, as practiced in the Netherlands, would help Mongolia prioritize infrastructure and policy decisions. Finally, fostering a stable investment environment and promoting community-based energy projects will be key to building public support and accelerating the clean energy transition.
By Bolor Lkhaajav
Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.

Mongolia Trade Surplus Largest In Over a Year www.tradingeconomics.com

Mongolia’s trade surplus widened significantly to USD 487.2 million in September 2025 from USD 50.7 million in the same month last year.
This marked the largest trade surplus since June 2024, as exports rose by 10.1% to USD 1550.5 million, while imports grew by 6.6% to USD 1063.3 million.
For the January-September period, however, the trade plus narrowed to USD 2,174.8 million from 3,174.8 million a year earlier.
Exports declined by 9.1% year-on-year to USD 10,708.6 million, largely driven reduced shipments by textiles and textile articles (-35.3%) and mineral products (-9.7%), with China representing 91.2% of total exports, followed by Switzerland (5.7%), and the US (0.9%).
Meanwhile, imports slipped by 0.9% to USD 8,533.8 million, dragged down by reduced purchases of transport vehicles and their spare parts (-11.3%) and mineral products (-3.3%).
China accounted for the largest share of total imports (40.6%), followed by Russia (23.9%) and Japan (10.8%).

Mongolia Inflation Rate at 6-Month High www.tradingeconomics.com

The annual inflation rate in Mongolia rose to 9% in September 2025 from 8.8% in the previous month.
This marked the highest reading since March, as prices accelerated for food and non-alcoholic beverages (10.6% vs 9.9% in August), furnishings, household equipment and tools (7% vs 5.8%), health (6.5% vs 6.2%), alcoholic beverages and tobacco (5.3% vs 4.9%), transport (4.1% vs 3.6%), and communication (1.5% vs 1%).
On the other hand, costs moderated for housing and utilities (19.4% vs 19.8%), restaurants and hotels (11.4% vs 12.8%), miscellaneous goods and services (8.1% vs 8.6%), clothing and footwear (7.9% vs 8.4%), and recreation and culture (5.3% vs 5.6%).
Additionally, prices were steady for insurance and financial services (15.3%) and education (12.8%).
On a monthly basis, consumer prices rose 0.2% in September, easing from 1.6% in the previous month.

Procurement and Construction of Premium New Distribution Center (EOI announcement) www.montsame.mn

The Premium Nexus JSC (“the Company”) would like to invite potential and/or experienced bidders to submit their Expression of Interest (EOI) in relation to “Procurement and Construction of Premium New Distribution Center” in Ulaanbaatar, Mongolia.
[An EOI is only preliminary step to formal tender process to understand and identify whether there are potential bidders in the market that are interested in and capable of satisfying the needs of the business]
WORKS’ REQUIREMENTS (WRQ):
The scope of this project includes the construction and operational readiness of a fully integrated logistics complex comprising a Dry Distribution Center (Dry DC), a Cold Distribution Center (Cold DC), and a Fleet Operation Facility, all aligned with international standards and scalable for future expansion.
●        A 4,800~ m² cold distribution center will be constructed at Khonkhor
●        A 23,000~ m² dry distribution center will be built in Urgakh Naran
●        A 6,300~ m² fleet facility will be built in Urgakh Naran
KEY SCOPE ELEMENTS:
●        Site Location:
▪          Permitted land is located in the Urgakh Naran, Khonkhor area in the Nalaikh District of Ulaanbaatar, Mongolia
●        Dry Distribution Center (Dry DC):
▪          Construction of ambient storage warehouse facilities with loading docks, staging areas, and office spaces.
▪          Installation of racking systems, semi-automated sorting lines, and material handling equipment.
▪          Compliance with local safety, fire protection, and construction standards.
▪          Development of site-wide access roads, internal circulation, parking zones, and drainage systems.
●        Cold Distribution Center (Cold DC):
▪          Construction of temperature-controlled zones.
▪          Installation of refrigeration systems, thermal insulation, and temperature monitoring technologies.
▪          Development of separate cold chain receiving and dispatch areas with hygiene controls.
▪          Integration of food safety protocols and cold chain compliance aligned with global standards.
●        Fleet Operation Facility:
▪          Establishment of a centralized fleet yard with vehicle bays, fueling points, and maintenance workshops.
▪          Setup of driver welfare areas, fleet control rooms, and inspection points.
●        Operational Readiness:
▪          Acquisition of all necessary permits, licenses, and certifications prior to operations.
Interested and experienced bidders are invited to submit their EOI and must include/attach, as a minimum, the following documentation/information:
Mandatory documents:
●        State registration certificate (copy)*
●        HSE policy & procedures (copy)*
●        Business Code of Conduct (copy)*
●        Audited Financial statements from the last 3 years (copy)*
●        Brief introduction of company (copy)*
●        Ownership/ shareholder information such as Company charter (copy)*
●        Executive team structure/ introduction (copy)*
●        CVs of Key personnels i.e. engineering team
●        Organization structure & Total manpower (copy)*
●        List of Equipment Owned/Rented
Scope-specific documents:
●        Scope-specific experience: List of contracts with similar scope and complexity for the last 10 years
●        Customer reference (at least 3)
●        Applicable license and permissions related to the scope
EOI documents must be prepared in English and must be submitted to “otgonbaigal.d@premiumunited.mn” before 5pm, (Ulaanbaatar time) October 31, 2025.
Important notice:
●        The Company is only seeking an Expression of Interest from potential bidders and makes no representation or promise in relation to procuring work from a bidder or bidders.
●       The Company reserves the right to refuse any document(s) which is incomplete or submitted after the specified date & time.
●        The Company will not accept any EOIs stored on internet storage or in any other webpages or links.
●        The Company will not be responsible for any costs associated with preparing and submitting an Expression of Interest to the Company.
●        There will be no Questions and Answers provided during the EOI process.

Signing of Grant Agreement with Mongolia：Contributing to strengthening the foundation for developing engineers through a Japanese-style practical training facility and equipment www.jica.go.jp

On September 29, the Japan International Cooperation Agency (JICA) signed a grant agreement with the Government of Mongolia in the capital city Ulaanbaatar, to provide grant aid for the Project for the Improvement of Environment for Developing Engineers through Japanese-style Tertiary Education in Engineering. The signatures were exchanged between Minister Javkhlan Bold of Ministry of Finance of Mongolia and Chief Representative Miyagi Kensuke of JICA Mongolia Office.
The project outline is explained below.
The Project for the Improvement of Environment for Developing Engineers through Japanese-style Tertiary Education in Engineering
- Country (Target Areas)
Mongolia (Ulaanbaatar)
- Project Objective
The objective of the Project is to strengthen the foundation for training engineers in Mongolia by constructing a practical training facility and providing practical training equipment for three technical colleges, thereby contributing to the industrial diversification and promotion in Mongolia.
- Specific Project Details
(a) construction of a practical training facility
(b) procurement and installation of practical training equipment
(c) consulting services
- Maximum Grant Amount
1,869 million Japanese Yen
- Implementation Period (planned)
32 Months (including detailed design work and procurement）
- Executing Agency
Ministry of Education
- Contribution to SDGs
Goal 4（Quality education）

Petro Matad shares surge after Mongolia tests ‘exceeded expectations’ www.ukinvestormagazine.co.uk

Petro Matad has announced that well testing at its Gazelle-1 site has exceeded expectations, with the company now fast-tracking the well for production before month-end.
At long last, some good news from Petro Matad.
The AIM-quoted Mongolian oil company revealed on Wednesday that the well flowed oil and gas to surface without artificial lift after perforating an eight-metre zone in the Tsagaantsav Formation.
Initial flow rates reached 160 barrels of oil per day on a 1/8 inch choke. This jumped to 300 bopd on a larger choke, ultimately achieving approximately 460 bopd on a 1/4 inch choke.
Crucially, no formation water appeared during testing. The oil quality measured 43° API, matching crude from the company’s Heron-1 well.
‘The performance of Gazelle-1 on test has exceeded expectations’, Petro Matad said in an RNS released on Wednesday, adding that production is targeted to begin before the end of October. Neighbouring operator PetroChina has provided equipment from its inventory to expedite completion and start-up.
Petro Matad shares were 30% higher at the time of writing.
The flow rates mean the rig will remain at Gazelle-1 rather than moving to test the Gobi Bear-1 well as planned. That operation has been postponed until April 2026. Investors shouldn’t be too upset that development at Gobi will take a while longer.
Elsewhere, Petro Matad reported progress at Heron-2, where beam pump installation began this month, and confirmed completion of Heron-1’s connection to Mongolia’s national electricity grid.
“We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are now prioritising getting the well onstream as it shows the potential to significantly increase our daily production and revenue,” said Mike Buck, CEO of Petro Matad.
“We are also glad to see the start of an efficient down hole clean up at Heron-2 which should give us the definitive results on flowing fluid and well rate that we seek.
“We are disappointed that we will not be able to test Gobi Bear-1 during this operational season but there is minimal additional cost to remobilise for this activity in 2026 and right now, given the enthusiasm with which Gazelle-1 has tested, the production addition must be our first priority.”
Petro Matad was included in UK Investor Magazine’s ‘Top 20 Stock Picks for 2025’ and is currently one of the worst performers, losing 27% year-to-date.

Ulaanbaatar to Supply 170,000 Households with Semi-Coke Briquettes www.montsame.mn

The Green Development Committee of the Citizens’ Representatives Khural of the Capital City convened a meeting at the eastern plant of the “Tavantolgoi Tulsh” LLC.
The meeting reviewed the preparations for supplying over 170,000 households in Ulaanbaatar with semi-coke smokeless briquettes and transitioning 5,000 households to gas fuel. Officials discussed matters related to fuel distribution, supply, pricing, storage, and household access to coal, seeking detailed clarifications from the company. During the heating season, coal will be sold at 382 distribution points across the capital, and residents can purchase fuel using digital cards through the “Hotula” mobile application.
Director of “Tavantolgoi Tulsh” LLC, Ts. Erdenebayar, said, “Studies show that coal smoke accounts for 55 percent of Ulaanbaatar’s air pollution. We estimate that the use of semi-coke briquettes will reduce emissions by 25–28 percent. The preliminary price is set at MNT 3,750 per bag for compressed briquettes and MNT 5,000 for semi-coke fuel.”
It is worth noting that the sale of semi-coke briquettes, originally planned to begin on October 1, 2025, has been postponed pending a decision by the National Committee.

100.9 Kilometers of Roads Upgraded in Ulaanbaatar This Year www.montsame.mn

As of today, a total of 100.9 kilometers of roads have been upgraded in Ulaanbaatar, with 96 percent of the planned works completed, according to the Road Development Office of the Capital city of Mongolia.
In 2025, the Governor's Office of the Capital City of Ulaanbaatar planned to renovate 104.4 kilometers of roads and related infrastructure across 44 locations. Within this framework, major reconstruction has been completed on Nairamdal and Enkhtaivan Avenues, while roads in the Sharga Morit, Yargait, Shadivlan, and Goodoiin Am areas have also been repaired.
The works include laying asphalt concrete pavement, adjusting manhole covers, installing new drainage systems, and replacing roadside barriers.
Road maintenance continues, and night repairs are scheduled this week at two to three additional locations.