Government Orders Uninterrupted Goal Transportation Through Gashuunsukhait, Khangi Border Crossings www.montsame.mn

At its regular session on February 25, the Cabinet approved a resolution on some measures to improve transport coordination at certain border crossings.

Under the resolution, Minister of Finance Javkhlan Bold, along with authorities of the General Customs Administration and the General Authority for Border Protection, have been tasked to urgently resolve the installation of smart customs gate equipment at the driver-operated vehicle entry section of the automated container transport terminal at the Gashuunsukhait border crossing in Umnugobi aimag.

In addition, relevant authorities were instructed to ensure the swift clearance through the Gashuunsukhait and Khangi border crossings of coal traded via the Mining Products Exchange and coal transported by the Mongolian Railway state-owned enterprise. The measures aim to guarantee the uninterrupted operation of coal transportation exports.

Concessional Loan Agreement Signed Under ‘White Gold’ National Movement www.montsame.mn

 A signing ceremony was held on February 25 for a concessional loan financing agreement to be provided in 2026 under the “White Gold” national movement initiated by the President of Mongolia.

The ceremony was attended by Minister of Food, Agriculture and Light Industry Badamsuren Myagmarsuren, along with executives of nine banks, including Trade and Development Bank, State Bank, and Golomt Bank.

Speaking at the event, Minister Badamsuren expressed gratitude to the bank leaders and staff for supporting and cooperating in implementing sectoral policies and decisions. He emphasized that the results of national movements and programs demonstrate the importance of state support for the private sector through effective policies and concessional loans. The ministry is working on draft legislation aimed at creating a favorable legal environment to enhance the competitiveness of enterprises, including support measures such as preferential loans, land allocation, and tax incentives.

Under the approved 2026 state budget, MNT 350 billion is planned to be allocated within the framework of the “White Gold” movement. Last year, under the initiative, a total of MNT 509 billion in concessional loans for both working capital and investment financing was provided to 182 wool, cashmere, and leather processing factories and enterprises, including repeat borrowers.

As a result, 70 percent of raw cashmere was prepared by domestic producers, while exports of combed cashmere reached a historic high of 4,000 tonnes, valued at USD 330.6 million. In addition, spinning capacity increased by 400 tons and knitting capacity by 200,000 pieces.

Mongolia Moves to Next Stage of Copper Smelter Selection Process www.montsame.mn

A working group established under the Prime Minister’s 2025 decree presented to the Cabinet a progress report on the project to build a copper concentrate smelting and processing plant within the framework of the Industrial and Technology Park based on Erdenet Mining Corporation.

Project information was delivered to 55 companies from more than 20 countries that are recognized as global leaders in copper and metallurgy. Of these, 13 companies from seven countries submitted proposals expressing interest in investing and cooperating in the project. Based on an evaluation of experience in implementing similar projects, technical and technological solutions, financial and economic capacity, and other criteria, four legal entities from two countries have been shortlisted, and preparation is underway for the next stage of the selection process, the Government’s Media and Public Relations Department reported.

The shortlisted participants include China’s NFC, Jiangxi Copper, and a consortium comprising Liantou New Energy Technology, China ENFI Engineering Corporation, and Shanxi Northern Copper Industry, as well as Switzerland’s Glencore International AG.

At its session on February 25, 2026, the Cabinet assigned the working group to approve the selection documents to be delivered to the shortlisted participants, to evaluate the submitted materials, and conduct the selection process. The Chief of the Cabinet Secretariat, Byambatsogt Sandag, was instructed to present the results to the Cabinet session in May this year.

Investment Opportunity in Mongolian Mining Introduced in London www.montsame.mn

The Ministry of Mining and Heavy Industry, in collaboration with the Mongolian National Mining Association, organized the “Mining Week & MinePro 2026” event on February 24, 2026, in London, to increase foreign investment and enhance strategic capital cohesion in the mining industry.

During the event, Minister of Mining and Heavy Industry Damdinnyam Gongor highlighted Mongolia’s mining sector policy, legal framework, investment climate reforms, and strategic trends. He emphasized the government’s policy of supporting sustainable development, transparency, international standards, and long-term investment in the sector.

Representatives of the MNMA, business entities, UK-based financial and international financial institutions, institutional investors, capital market professionals, and mining sector representatives participated and exchanged views. As part of the event, a panel discussion titled “From Strategy to Capital,” presentations on mining projects, and market discussions were held, along with B2B meetings with investors.

On the same day, Minister Damdinnyam met with Greg Guyett, First Vice President of the European Bank for Reconstruction and Development (EBRD), to discuss cooperation between Mongolia and the EBRD in the mining sector. During the meeting, the EBRD expressed its interest in cooperating on major industrial projects planned by the Government of Mongolia.

The parties also agreed to cooperate on conducting comprehensive baseline geological surveys across Mongolia and advancing digitalization in this area. Since 2006, the EBRD has provided more than EUR 2.5 billion in financing for 166 projects in Mongolia.

In addition, Minister Damdinnyam met with Chris McDonald, UK Minister for Industry at the Department for Business and Trade. The parties agreed to establish a joint working group between the two ministries to implement the Memorandum of Understanding on cooperation in the mining sector signed between Mongolia and the United Kingdom in 2024. They also agreed to explore opportunities for cooperation in financing joint baseline geological surveys in Mongolia, exchanging information, and supporting specialist training and capacity building.

Mongolia Seeks London Stock Exchange Listings for Mining Companies www.montsame.mn

Minister of Industry and Mineral Resources Damdinnyam Gongor met with Chief Executive Officer of the London Stock Exchange Julia Hoggett in London to discuss supporting Mongolian mining companies in listing on the exchange and attracting investment. The sides also exchanged views on enriching the operations of Mongolia’s mining products exchange with diversified financial instruments.

They further discussed utilizing stock exchange mechanisms as an effective option to channel benefits from mining projects to citizens through the national Wealth Fund, enhancing public knowledge and experience in capital markets, and introducing greater use of digital platforms. The Ministry of Industry and Mineral Resources reported that the parties agreed to study the London Stock Exchange’s experience and cooperate in these areas. The meeting is expected to facilitate the entry of Mongolian mining companies into global financial markets, open new sources of investment, and enhance public financial literacy.

Established in 1801, the London Stock Exchange is one of the world’s oldest and largest stock exchanges, hosting more than 1,000 listed companies from over 60 countries with a combined market capitalization of approximately USD 5.9 trillion. Its principal equity markets include the Main Market for large global companies and AIM (Alternative Investment Market) for smaller and high-growth firms, alongside markets for bonds, ETFs, and derivatives.

TMK Energy Sets New Gas Output Record at Mongolian CSG Pilot www.tipranks.com

The latest announcement is out from TMK Energy Limited ( TMK +18.56% ▲ ).

TMK Energy has reported a new daily gas production record of more than 25,000 standard cubic feet at its Gurvantes XXXV coal seam gas project in Mongolia, following the rebound in output after planned shut-ins of two pilot wells for pressure build-up tests. The tests confirmed reservoir pressure is falling in line with the company’s model, a key condition for gas desorption from coal seams and an important indicator for long-term project viability.

The LF-07 well has emerged as the standout performer, with gas production climbing above 13,000 scfd and showing a steady upward trend, supported by indications that gas is being desorbed from one of the highest wells in the structure. Management highlighted that the recent performance suggests the development of a localized gas saturation zone and bolsters confidence in expanding gas saturation across the field, reinforcing the project’s potential and supporting a more optimistic outlook for shareholders as production trends strengthen.

The most recent analyst rating on TMK +18.56% ▲ stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on TMK Energy Limited stock, see the AU:TMK Stock Forecast page.

More about TMK Energy Limited

TMK Energy Limited is an Australian-listed exploration and production company focused on coal seam gas development. Its flagship asset is the 100% owned Gurvantes XXXV CSG Project in Mongolia, where the company is advancing a pilot well program to assess commercial gas production potential in a growing regional energy market.

Will Mongolia ban social networks for children, as Australia and France have done? www.open.kg

This topic is actively discussed in the Ministry of Education.

On its official website, Minister of Education Naranbayar Purevsuren published information that the ministry is developing a draft law that will restrict the use of social networks by children. This decision is based on growing data about the negative impact of social networks on young users, — reports MiddleAsianNews.

The minister also noted that in countries such as Australia, France, South Korea, and Spain, there are already legal precedents where restrictions were introduced for users under 16 years old or similar measures.

In his speech, he emphasized that Mongolia aims to actively involve parents, educators, platform operators, and child rights protection specialists in the process of developing the new law that will be implemented in practice.
   

Foreign Trade Turnover Reaches USD 2.6 Billion www.montsame.mn

In January 2025, Mongolia traded with 105 countries, and total foreign trade turnover reached USD 2.6 billion.

Of this amount, exports totaled USD 1.7 billion and imports USD 843.0 million, resulting in a trade surplus of USD 906.5 million, the National Statistics Office of Mongolia reported.

Total trade turnover increased by 30.7 percent, or USD 608.9 million, compared to the same period last year. Exports rose by 71.6 percent, or USD 730.2 million, while the trade surplus increased 16.5 times, or by USD 851.5 million. Imports, however, declined by 12.6 percent, or USD 121.3 million.

The growth in exports was mainly driven by increases in copper ore and concentrates by USD 462.3 million, coal by USD 167.6 million, unprocessed or semi-processed gold by USD 95.5 million, and canned meat products by USD 8.3 million. Meanwhile, exports of fluorspar ore and concentrates decreased by USD 15 million, zinc ore and concentrates by USD 6 million, crude oil by USD 5.6 million, and molybdenum ore and concentrates by USD 2.5 million.

The decline in imports compared to the same period last year was largely due to decreases in passenger cars by USD 73.1 million, trucks by USD 36.1 million, vehicle spare parts and components by USD 17.6 million, diesel fuel by USD 13 million, and bulldozers and excavators by USD 7.5 million. Conversely, imports of gasoline increased by USD 26.8 million, nitrogen fertilizers by USD 5.8 million, and packaged medicines by USD 3.5 million.

Furthermore, compared to the previous month, exports decreased by 11 percent, or USD 215.2 million, while imports declined by 23.8 percent, or USD 263.9 million. Mineral products, precious stones, metal jewelry, and base metals accounted for 96.7 percent of total exports. On the import side, mineral products, machinery and mechanical equipment, electrical goods and transport vehicles and their parts, as well as base metals and articles thereof, comprised 72 percent of total imports.

Mongolia Revokes Permits of Six Foreign NGOs www.montsame.mn

The Immigration Agency of Mongolia is conducting oversight of the activities of branches and representative offices of international and foreign non-governmental organizations operating in the country.

Within this framework, the Agency has revoked the permits of six organizations to operate in Mongolia in accordance with the Regulation on Granting, Extending, Revoking Permits, and Supervising the Activities of Branches and Representative Offices of International and Foreign Non-Governmental Organizations in Mongolia.

Specifically, the permits of Republic of Korea-based Raphael International, National Institute for Environmental Research/Monitoring and Global Care, the Czech Republic–based Caritas Czech Republic, the United States–based La Mission De Joie, and Russia-based Silk Way Rally have been revoked.

As of today, a total of 70 branches and representative offices of international and foreign non-governmental organizations are operating in Mongolia.

Mining drives Mongolia’s economy as reform momentum builds www.eastasiaforum.org

Mongolia’s economic outlook signals continued steady growth and structural adjustment amid intensifying political transformation in 2026. GDP is expected to rise by 5.6 per cent — a gradual deceleration compared to 2025 — but still reflecting generally robust momentum. Growth in 2025 was predominantly supply‑driven. The mining sector has been a central driver — a trend that may prove unsustainable amid shifting external conditions.

Mongolia’s non-mining economy grew unevenly by 5.3 per cent. Agriculture was the standout contributor, surging by 33.8 per cent due to favourable conditions following the severe 2023–24 winters — which lifted herd numbers and pastoral productivity. Agriculture’s gains were primarily pastoral rather than being driven by crop output.

Construction expanded by more than 15 per cent on the back of public investment and housing development. Manufacturing grew by 8 per cent as food processing and wool- and cashmere-based industries increased capacity utilisation. The energy sector also grew moderately, despite persistent electricity shortages and ageing infrastructure.

But services faced significant strain in 2025 as reduced coal export revenues led to employment declines of 6.6 per cent in the trade sector and 3.1 per cent in the transport sector. Both sectors are expected to recover gradually from 2026 onwards as household consumption strengthens and labour market conditions stabilise.

On the demand side, consumption grew by 9 per cent, driven by rising wages and strong credit growth. This helped offset a 5.8 per cent contraction in investment in the first three quarters of 2025. The shift toward supply-driven growth marks a notable shift toward a growth model powered by production capacity and external commodity conditions.

Mining will remain Mongolia’s core growth engine in 2026. Relatively strong global prices, alongside stable output from the Oyu Tolgoi copper and gold mine, will underpin sectoral performance, with coal continuing as the key driver. Non-mining growth is likely to diversify — agricultural expansion will moderate due to its high base. Growth in construction, manufacturing and services is likely to accelerate.

Inflation remained elevated at 7.5 per cent in December 2025, above the Bank of Mongolia’s target range. Food prices rose 11.3 per cent, while non-food inflation eased to 6.1 per cent. Poor harvests, weak seasonal declines in meat prices, rising wages and fuel supply risks all contributed to persistent inflationary pressures.

Regulated price hikes — especially sharp electricity tariff increases from late 2024 and heating tariff adjustments — added further cost‑push pressure. Though the Bank of Mongolia raised its policy rate to 12 per cent, inflation may climb again in early 2026 due to public‑sector wage hikes before easing toward 6.1 per cent in 2027. Food-driven inflation will continue to strain households.

Foreign trade totalled over US$27 billion, with a US$4.4 billion surplus as exports reached US$15.8 billion and imports US$11.3 billion. Compared with 2024, exports dipped by 0.1 per cent and imports declined by 2.6 per cent. Export composition shifted strongly — copper ore exports surged 76 per cent and gold exports rose 38 per cent on strong global prices, while coal exports dropped 34.6 per cent amid weaker demand and falling prices. Though Mongolia benefited from high metal prices, its heavy reliance on coal continues to expose it to fluctuations in Chinese demand and global commodity cycles.

Fiscal performance deteriorated in 2025, with the structural budget balance posting a MNT 1.2 trillion (US$796 billion) deficit — contemporaneously estimated at 1.5 per cent of GDP. Revenue growth slowed to 1.3 per cent, while spending increased by 2.3 per cent — led by current transfers, goods and services and capital outlays. Despite underperforming on revenue, Mongolia’s debt remained relatively low at an estimated 39.7 per cent of GDP, while foreign exchange reserves reached over US$7 billion — a historic high — helping bolster macroeconomic stability.

These economic changes took place within a highly turbulent political landscape. A three-party coalition government collapsed in June 2025 after a no-confidence vote triggered by mass protests in Ulaanbaatar over corruption, inequality and alleged government waste. Factional tensions within the ruling Mongolian People’s Party have persisted despite the formation of a replacement governing coalition. The opposition Democratic Party also underwent major renewal, electing reformist Odongiin Tsogtgerel as chairman ahead of the 2028 elections.

In September 2025, the new government launched the ‘New Confidence – Bold Reform’ program within the 2026–2030 Five-Year Development Plan. The reforms target ten major domains. These include government efficiency, taxation, state-owned enterprises, public administration, rural development and green energy. Austerity measures were also introduced to close a potential MNT 3.3 trillion (US$6.7 billion) budget gap. The government has further pursued downsizing of the civil service and restructuring of state-owned enterprises. Long-term feasibility will be hampered by scale and sensitivity despite early macroeconomic stabilisation. The agenda will face pressure from public expectations, entrenched bureaucratic interests and shifting political alignments.

Mongolia’s 2026 economic trajectory will hinge heavily on the external environment, particularly global commodity markets and Chinese demand. Domestically, political consolidation — marked by an increasingly assertive presidency and reduced intra-party fragmentation — will be critical to shaping policy implementation. The government’s ability to manage internal tensions, sustain reform momentum and mitigate external vulnerabilities will determine whether Mongolia can maintain stability during this pivotal phase of economic and institutional transformation.

Narantuya Chuluunbat is Professor at the Economics Department of the National University of Mongolia.