Oyu Tolgoi Management Fee Agreed to Be Halved www.montsame.mn

 A working group established under Prime Ministerial Order No. 68 to reduce the management fee rate of the Oyu Tolgoi project is currently holding talks with the investor-side Rio Tinto.

Prime Minister Uchral Nyam-Osor stated that “the Government has achieved its first successful outcome in the Oyu Tolgoi negotiations.” The working group, led by Minister of Industry and Mineral Resources Damdinnyam Gongor, has reportedly reached an agreement with Rio Tinto to cut the Oyu Tolgoi project’s management fee by half and eliminate overlapping charges.

According to the Government Media and Public Relations Department, the agreement is expected to reduce costs by USD 2.2 billion and increase Mongolia’s benefits from the project by USD 1.5 billion.

N.Uchral: Oyu Tolgoi management fees to be cut by half www.gogo.mn

Prime Minister N.Uchral announced on his official website today that Mongolia has secured its first major result in the Oyu Tolgoi agreement. 

He said that as a result of negotiations with the Rio Tinto Group, the working group led by the Minister of Industry and Mineral Resources has reached an agreement to halve Oyu Tolgoi management fees and eliminate duplicate payments.

According to the Prime Minister, the agreement will reduce payment costs by USD 2.2 billion and increase the benefits Mongolia receives by USD 1.5 billion. The outcome is also positive for investors, noting that it reflects Mongolia’s ability to protect its interests and negotiate with investors on equal footing. 

Advanced Water Purification Plant put into operation www.gogo.mn

The Advanced Water Purification Plant (AWPP), built with advanced technology, has been put into operation, increasing Ulaanbaatar’s water supply.

Under the Millennium Challenge Compact signed between the Government of Mongolia and the United States Millennium Challenge Corporation on July 27, 2018, the “Ulaanbaatar City Water Supply Enhancement Program” was launched with a grant of USD 350 million from the U.S. government and USD 111.7 million from the Government of Mongolia.

Within this framework, a new western water source for Ulaanbaatar was established based on groundwater resources around Biokombinat and the Shuvuun Factory area, and a deep water purification plant equipped with advanced technology was built and commissioned.

President of Mongolia Khurelsukh Ukhnaa, U.S. Ambassador to Mongolia Richard Buangan, Acting Chief of Staff of the U.S. Millennium Challenge Corporation Dan Petrie, Deputy Minister of Finance B.Khulan, and Capital City Governor and Mayor of Ulaanbaatar Kh.Nyambaatar officially opened the plant.

The Water Compact is a major project that has introduced and localized advanced global technologies and infrastructure in Mongolia for the first time, while also improving the policy and legal environment in the sector. It is not only the largest investment in Mongolia’s water sector in the past 30 years, but also a symbol of the Mongolia–U.S. strategic partnership.

The new western water source will increase Ulaanbaatar’s overall water supply by up to 80% compared with 2016 levels and provide the capital’s 2.4 million residents with sustainable access to clean water meeting standards for the next 30 years. It is also expected to help prevent future water shortages and create the basic conditions for Ulaanbaatar’s westward expansion, including the development of satellite cities and residential areas.

In addition, the wastewater recycling plant, which is scheduled to be commissioned in March 2026, will introduce Mongolia’s first experience in recycling wastewater for energy production. The project is expected to save 18 million cubic meters of groundwater annually for future generations.

To ensure the long-term benefits of the program, work was also carried out to improve the legal, regulatory, and policy framework for the water sector, revise water service cost and tariff policies, support wastewater pollution control and reduction, and strengthen the institutional capacity of water supply and sanitation organizations.

A total of 8,270 jobs were created during the construction phase of the program, 92% of them filled by Mongolian workers. In addition, 73 new jobs were created in newly established factories.

To strengthen the human resources of water supply organizations operating the new infrastructure, 187 engineers and technicians from water supply organizations were trained and certified.

The opening ceremony was attended by high-level representatives from the two governments, officials from the capital city, representatives of the U.S. Millennium Challenge Corporation, the Mongolian Millennium Challenge Fund, contractors involved in the project, and other guests.

Gold-backed ETF launched www.ubpost.mn

The secondary market trading of units of Gold Trust Exchange-Traded Fund LLC, established by BBS LLC, launched on May 15 in a ceremony attended by senior financial regulators and market officials.

The event was attended by Financial Regulatory Commission Deputy Chairman T.Tserenbadral, Mongolian Stock Exchange Acting CEO D.Munkhbat, BBS CEO J.Bataa and other relevant officials. Speaking at the ceremony, Deputy Chairman T.Tserenbadral said the Financial Regulatory Commission has approved regulations and established a regulatory framework for exchange-traded funds in line with international standards, paving the way for new investment products in the domestic capital market.

Gold Trust Exchange-Traded Fund becomes the second ETF listed on the stock exchange, following Invescor Global Q Exchange-Traded Fund LLC, which received the first ETF license in 2023.

The fund is notable for being the country’s first gold-backed ETF, allowing investors to gain exposure to gold price movements through an investment fund without incurring additional costs. Investors can purchase units through the stock exchange in the same manner as buying shares. The fund’s underlying instrument is GLD, or SPDR Gold Shares ETF, a gold ETF that has traded on the New York Stock Exchange since November 2004.

Green loan rates cut www.ubpost.mn

Prime Minister N.Uchral received leaders of the banking and financial sector last week to advance the Government’s green financing policy, announcing expanded loan terms, reduced interest rates and a sweeping tax reform package as part of the country’s broader Green Development Liberalization agenda.

Governor of Mongol Bank S.Narantsogt announced that green loan terms have been extended from 30 to 60 months, cutting monthly payments by approximately 40 percent, with interest rates set four to six percentage points below standard loan rates. The loans cover solar panels, electric vehicles and building insulation.

“Green Development Liberalization is not a slogan, but a real work,” Prime Minister N.Uchral said, adding that the Government, Mongol Bank and the financial sector are jointly committed to expanding green lending across the country. The state has moved beyond policy declarations into early implementation. A total of 83 households in Chingeltei District are now generating energy through solar panels and collectors and feeding surplus power into the central grid, a development the Prime Minister described as “the real beginning of the policy of energy efficiency, green investment, and sustainable financing”. A government resolution reducing dependence on fossil fuels has already been adopted, and a 15-stage bureaucratic approval process that previously hindered green energy projects has been dismantled.

Governor S.Narantsogt said the Development Bank is preparing to attract lower-cost green financing sources and develop blended financing solutions. The Government also signaled strong support for green bonds in the capital market as an additional instrument to fund the transition. Officials acknowledged that work remains, including expanding subsidy sources and ensuring loan accessibility accounts for varying household income levels.

The Premier also outlined a tax reform package submitted to Parliament, framing it as relief for working Mongolians and small enterprises. Key measures include a 100 percent reduction in personal income tax for monthly incomes up to 792,000 MNT, an increase in the VAT registration threshold from 50 million to 400 million MNT, and a one percent tax rate for companies earning up to 2.5 billion MNT annually. In the first month of a tax debt amnesty period, the Government reopened accounts for companies carrying tax and VAT arrears, and 146 businesses were cleared to resume operations immediately without requiring additional permits.

The meeting also addressed mounting pressure on the housing mortgage program. Over the past 13 years, 144,600 households have obtained homes through the joint Government and Mongol Bank mortgage initiative. Commercial bank loans now account for 62 percent of total housing lending. However, demand for the Government’s subsidized six-percent mortgage loan far outpaces supply, with 47,000 applicants currently on a waiting list. Governor S.Narantsogt said the central bank and the Government are working to amend housing mortgage financing regulations and establish a dedicated Housing Financing Bank to ease the bottleneck and introduce a wider range of mortgage options.

Kincora Receives Option Payment for Divestment of Mongolian Assets www.tradingview.com

(Kincora or the Company) is pleased to announce it has executed a Term Sheet and received a non-refundable Option Payment of US$1.5-million from Tumen Ail Coal LLC (TAC) providing it exclusivity to secure 100% of Kincora's wholly owned Mongolian subsidiaries (the "Transaction"). TAC is an arms-length group with assets and operations in Mongolia.

The aggregate staged consideration for the Transaction is US$10-million, payable in full to Kincora, free and clear of any taxes, levies, or fees, but excluding certain contractual obligations of Kincora's.

All definitive transaction documents shall be executed no later than July 1st, 2026, at which milestone the next staged payment of US$3.5-million is due to Kincora.

Upon execution of the definitive agreement, TAC shall deposit the final staged payment of US$5-million into an escrow account for release upon registration of the changes in the shareholders of the Mongolian subsidiaries which is anticipated to occur before year-end.

About Kincora

Kincora Copper Limited is an emerging Australia-focused gold-copper explorer with a hybrid project generator strategy and currently drilling at two projects (Nevertire South and Condobolin).

The Company is successfully proving up the prospectivity of its extensive project portfolio, which includes multiple district-scale landholdings and scalable drill ready targets. These assets are located in Australia's Lachlan Fold Belt and Mongolia's Southern Gobi, two of the globe's leading porphyry belts, and the historical Condobolin mining field within the Cobar basin in NSW.

The Company has already unlocked over $100 million of potential partner funding for multiple earlier stage and/or non-core porphyry projects. These initial deals have supported over 20,000 metres of drilling and over A$10m of partner funded exploration since late 2024, with management fees and exploration ramping up.

Various partner discussions are ongoing for its remaining 100% owned flagship and advanced exploration stage porphyry projects.

By having a significant portfolio of partner funded large porphyry projects, and a very focused capital efficient programs at the Condobolin and other sole funded projects, the Company is seeking to position Kincora as a leading institutional grade explorer in the public Australian and Canadian markets, and the leading project generator on the ASX.

Museum industry aims for MNT 10 billion in annual revenue www.gogo.mn

A scientific conference under the theme “Museum Research: Museums Uniting a Divided World” was held in celebration of International Museum Day.

Minister of Culture, Sports, Tourism and Youth J.Aldarjavkhlan said the development of the museum sector will be elevated to a new level by focusing on three main areas:

Increasing the quality and value of museum services and raising the industry’s annual revenue to ₮10 billion;
Improving service accessibility through the phased introduction of digital transformation and innovative solutions;
Creating conditions for at least 50% of tourists visiting Mongolia to visit museums as part of tourism development.
During the conference, participants discussed presentations related to the preservation and protection of cultural heritage, as well as the results and significance of the national inventory of movable historical and cultural artifacts.

The discussion was attended by G.Batkhuyag, Head of the Department of Culture and Arts of the Government Implementing Agency, Z.Badamkhatan, Director of the Institute of Paleontology of the Mongolian Academy of Sciences, and National University of Mongolia lecturers D.Barsbold (Ph.D), and S.Badral (Ph.D).

More than 250 specialists from 44 national, state, and local museums, as well as researchers and scholars from universities and research institutions, participated in the conference.

Participants exchanged views on the current state and future development of the museum sector, challenges related to the preservation and protection of cultural heritage, digital transformation, and international best practices.

Change of His Majesty’s Ambassador to Mongolia: Edwin Samuel www.gov.uk

Beyond Aid and Trade: Japan, Mongolia, and the Critical Minerals Opening www.csis.org

Japan is widely hailed as a model for supply chain resilience in rare earth elements (REEs), leading advanced economies in research and development (R&D) investment as a percentage of GDP and other long-term efforts to “de-Chinafy” its REE supply chain. Following Beijing’s 2010 export restrictions in response to the Senkaku/Diaoyu fishing boat incident, Tokyo launched a multifaceted strategy to diversify its supply sources, including investments in overseas mining projects. In 2025, Japan sourced 66 percent of its REEs from China, down from 93 percent in 2009.

However, China’s recent export restrictions on dual-use items, including REEs and other critical minerals, following Prime Minister Takaichi’s comments on a Taiwan contingency, have renewed concerns and prompted the Japanese government to redouble diversification efforts across REE and critical minerals supply chains. Tokyo has advanced key initiatives overseas that go beyond purchasing raw materials to building new processing capacity outside China, which currently controls 90 percent of global capacity. As Japan searches for new collaborators in critical minerals, its technological and financing capabilities may be a well-suited match for the resource endowment of Mongolia, a longtime but underutilized economic partner.

Mongolia's Resource Landscape and the Processing Gap
Mongolia holds an estimated $1–3 trillion in untapped mineral reserves, including significant deposits of copper, fluorspar, coal, and REEs. The challenge is not access to deposits but the absence of domestic processing capacity. Approximately 88 percent of Mongolian minerals leave the country unprocessed, with the vast majority bound for China. This pattern highlights the primary choke point in global REE supply chains, where limited mid- and downstream capacity creates structural dependence on countries better equipped with the vital infrastructure and technological know-how.

Mongolia's "Third Neighbor Policy" prioritizes greater economic and diplomatic ties with developed democracies to achieve strategic autonomy from its immediate neighbors of China and Russia. Redirecting exports to alternative buyers is a meaningful but insufficient step in this endeavor. Attracting investment and technology transfer in REE processing and refining from partners such as Japan is essential for Mongolia to capture more value, as processed and refined minerals command substantially higher prices than raw ore. Over time, this momentum may help expand Mongolia’s largely mining-based economy into artificial intelligence, clean energy, defense, and other downstream strategic sectors.

Existing Japan–Mongolia Frameworks
Japan has long been Mongolia's largest bilateral aid donor and became its first Economic Partnership Agreement counterpart in 2016. Tokyo supports Mongolia through soft loans and technical assistance via the Japan International Cooperation Agency (JICA), and in 2022, the two governments upgraded ties to a "Special Strategic Partnership for Peace and Security". The 2022–2031 Action Plan underpinning this partnership explicitly commits both sides to "cooperation to ensure a long-term, stable supply of Mongolian copper, REEs, and other mineral resources to Japan, and cooperation to revitalize the supply chain."

The institutional foundation is thus well-established for cooperation in new domains, including processing and refining REEs and other critical minerals. A 2016–2022 JICA capacity-building project on Mongolia's mining sector generated baseline recommendations for scaling up midstream capabilities, but has not yet produced concrete commercial deals or infrastructure projects. 

The Japan–Mongolia Opening and Structural Challenges
In the long term, resilient REE and critical minerals supply chains require upstream exploration and extraction, as well as midstream processing and refining, before reaching downstream markets. Mongolia possesses the former in abundance; Japan has a strident advantage in the latter through its magnet, chemical, and materials industries. Japan has already seen success in developing processing facilities overseas through loans and equity stakes, as demonstrated most prominently in the Japan Organization for Metals and Energy Security (JOGMEC)-led operations in Malaysia that separate REE oxides for Japanese manufacturing use. Through JOGMEC and related entities, Japan is cultivating overseas processing hubs, opening the door for Mongolia to host high-value facilities using its domestic mineral resources and Japanese expertise. 

Any expansion of Japanese investment in Mongolian mineral processing would face real barriers. Under Mongolia's Constitution and Land Law, foreign nationals and majority foreign-owned companies cannot freely transfer, collateralize, or sell land-use rights, even though they may obtain such rights, complicating the financing and structuring of large-scale processing facilities. As a landlocked country, Mongolia’s dependence on air and overland routes through China and Russia presents unavoidable logistical constraints, compounded by the risk of economic retaliation or coercion from its largest trading partner if it shifts closer to Japan. In this complex legal and geopolitical landscape, Japan's existing EPA and JICA frameworks may offer pathways unavailable to purely commercial investors. Converting these institutional advantages into tangible projects, however, will remain a key challenge.

A Broader Minilateral Context
Japan’s efforts in this space complement those by the United States, which has engaged in various dialogues, memoranda of understanding (MOUs), and partnerships with Mongolia aimed at promoting secure and resilient critical minerals supply chains in the Indo-Pacific. Mongolia is geographically proximate to both Japan's industrial base and existing supply routes, holds significant untapped deposits, and already has formal partnership frameworks with both Tokyo and Washington. Therefore, Mongolia could be integrated into U.S.–Japan bilateral initiatives, particularly those focused on identifying and investing in prospective processing and refining hubs. Some examples include the 2025 Framework For Securing the Supply of Critical Minerals and Rare Earths, the 2026 Action Plan on Critical Minerals to develop strategic trade policies and border mechanisms to mitigate supply chain vulnerabilities, and public–private partnerships such as JOGMEC’s MOU with U.S. firm REAlloys to develop REE processing technologies and build joint supply chains. 

Existing minilateral frameworks also present avenues for activating Japan–Mongolia cooperation. Mongolia recently attended the 2026 Critical Minerals Ministerial hosted by the United States, which saw the launch of the Forum on Resource Geostrategic Engagement (FORGE), the successor to the Minerals Security Partnership, to which Japan is a signatory. Mongolia and Japan could leverage coordination tools offered by forums such as FORGE to align policies and manage cross-border projects. These pathways suggest that Mongolia is not merely a passive supplier of raw materials but a plausible partner in emerging minilateral critical minerals architectures. 

Looking Ahead
As Japan pursues further diversification and resilience in its critical minerals supply chains and Mongolia seeks to move up the value chain, the two countries' complementary strengths and existing institutional frameworks suggest that deeper cooperation is a logical next step. Whether Tokyo and Ulaanbaatar move to activate these frameworks in the near term will depend on political will, structural feasibility, and commercial viability—questions that the robust bilateral relationship is well positioned to address.

State Budget Revenue Rises by MNT 1.2 Trillion in First Four Months of 2026 www.montsame.mn

Mongolia’s consolidated state budget revenue and grants reached MNT 10.2 trillion in the preliminary results for the first four months of 2026, according to the National Statistics Office of Mongolia. The figure represents an increase of 13.8%, or MNT 1.2 trillion, compared with the same period last year.

During the period, balanced revenue and grants totalled MNT 8.9 trillion, up 5.4% year-on-year, equivalent to an increase of MNT 459.7 billion.

Total expenditure and net lending reached MNT 10.4 trillion, resulting in a balanced budget deficit of MNT 1.4 trillion.

Tax revenue amounted to MNT 8.3 trillion in the first four months of the year, increasing by 4.3%, or MNT 344.5 billion, from the previous year. The growth was primarily driven by a 17.6% rise in social insurance revenue, equivalent to MNT 290.1 billion, and a 5.8% increase in value-added tax revenue, equivalent to MNT 105.8 billion.

Meanwhile, income tax revenue declined by 5.7%, or MNT 148.7 billion, while excise tax revenue decreased by 28.6%, or MNT 108.3 billion.

Of the total tax revenue, 29.9% was generated from income tax, 23.4% from value-added tax, 23.4% from social insurance contributions, 7.3% from foreign trade-related taxes, 3.3% from excise taxes, and 12.7% from other taxes, fees, and charges.