1 MAJOR STRATEGIC SECTOR PROJECTS TO BE IMPLEMENTED IN COOPERATION WITH WORLD BANK WWW.MONTSAME.MN PUBLISHED:2026/02/06      2 GOVERNMENT APPROVES NEW ADMINISTRATIVE BUILDING AT ULAANBAATAR INTERNATIONAL AIRPORT WWW.MONTSAME.MN PUBLISHED:2026/02/06      3 MONGOLIA’S CRISIS IS AN OPPORTUNITY TO TRANSFORM ITS SYSTEM WWW.JACOBIN.COM PUBLISHED:2026/02/06      4 MONGOLIA'S CENTRAL BANK BUYS 1.9 TONNES OF GOLD IN JANUARY WWW.XINHUANET.COM PUBLISHED:2026/02/06      5 TEAM MONGOLIA IS GEARING UP TO BE THE MOST FASHIONABLY WARM AT THE 2026 WINTER OLYMPICS. HERE'S WHY WWW.CREATORS.YAHOO.COM PUBLISHED:2026/02/06      6 ERDENE RAISES $28.7 MILLION TO ACCELERATE MONGOLIAN COPPER-GOLD EXPANSION WWW.TIPRANKS.COM  PUBLISHED:2026/02/06      7 HUNGARIAN OTP BANK EXPRESSES INTEREST IN OPERATING IN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2026/02/06      8 OYU TOLGOI: MONGOLIA’S HIGH-STAKES CLASH WITH RIO TINTO WWW.THEDIPLOMAT.COM PUBLISHED:2026/02/05      9 MONGOLIA PREPARES INTERNATIONAL TENDER TO BUILD STEEL PLANT WWW.AZERTAG.AZ  PUBLISHED:2026/02/05      10 RUSSIAN DEPUTY PM EXPECTS AGREEMENTS ON FREE TRADE AREAS WITH UAE, MONGOLIA, INDONESIA TO TAKE EFFECT IN 2026 WWW.INTERFAX.COM PUBLISHED:2026/02/05      СОНГИНОХАЙРХАН ДҮҮРГИЙН БАРУУН САЛААНЫ ГОЛЫН АЙ САВД ХӨВ ЦӨӨРӨМ БАЙГУУЛНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/02/06     СТРАТЕГИЙН САЛБАРЫН ТОМООХОН ТӨСЛҮҮДИЙГ ДЭЛХИЙН БАНКТАЙ ХАМТРАН ХЭРЭГЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/02/06     Ш.АЛТАНТУЯА АГСНЫ ГЭР БҮЛ 4.7 САЯ РИНГГИТИЙГ МАЛАЙЗАД БУЦААН ОЛГОЖЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2026/02/06     НИЙСЛЭЛИЙН ХЭМЖЭЭНД 4113 ТЕЛЕ КАМЕРЫГ НЭГДСЭН БОЛОН ДЭД ТӨВД ХОЛБОЛОО WWW.ITOIM.MN НИЙТЭЛСЭН:2026/02/06     МАНСУУРУУЛАХ БОДИСТОЙ ХОЛБООТОЙ ГЭМТ ХЭРЭГ 21.6 ХУВИАР ӨСЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/06     НИЙСЛЭЛИЙН УСНЫ ХАНГАМЖИЙГ НЭМЭГДҮҮЛЭХ ТӨСӨЛ ИРЭХ САРД ХЭРЭГЖИЖ ДУУСНА WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/06     МАЛ ХУЛГАЙЛЖ, БЭЛЧЭЭРТ НЬ НЯДАЛДАГ БҮЛЭГ ЭТГЭЭДИЙГ БАРИВЧИЛЖЭЭ WWW.NEWS.MN  НИЙТЭЛСЭН:2026/02/06     УНГАРЫН ОТП БАНК МОНГОЛД ҮЙЛ АЖИЛЛАГАА ЯВУУЛАХ ХҮСЭЛТЭЭ ИЛЭРХИЙЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/02/05     Г.ЗАНДАНШАТАР: ТӨСВИЙН ХӨРӨНГӨӨР ХАЙГУУЛ ХИЙСЭН ОРДУУДЫН ӨГӨӨЖИЙГ АРД ТҮМЭНД ХҮРТЭЭХ НЬ ЗҮЙ ЁСНЫ АСУУДАЛ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/05     БАЙГАЛЬ ОРЧНЫ АУДИТЫН ТУСГАЙ ЗӨВШӨӨРЛИЙГ ЦАХИМААР ОЛГОЖ ЭХЭЛЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2026/02/05    

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2025 London UK MBCCI London UK Goodman LLC

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Mongolian President likely to visit India next month www.wionews.com

Mongolian president Ukhnaagiin Khürelsükh is likely to visit India next month as part of the ongoing engagement between the 2 countries. Mongolia, landlocked between Russia and China, sees India as its 3rd and spiritual neighbour with deep linkages through Buddhism. The 4 Ds—Dharma, Democracy, Development Partnership & Digital Development Cooperation—have become pillars of the India-Mongolia relationship.
The visit comes as India and Mongolia mark 70 years of the establishment of diplomatic ties. India was one of the first countries outside the communist bloc to recognise Mongolia. India also played an important role in the entry of Mongolia into the United Nations. The 70th anniversary celebrations involve a number of initiatives and programmes.
The last Mongolian president to visit India was Khaltmaagiin Battulga in July 2019, but visits from Mongolia have continued, the last being earlier this year by top officials of the foreign and defence ministry. PM Modi had visited the country in 2025, a visit seen as a watershed in the ties between the 2 countries. Indian Defence Minister Rajnath Singh had visited the country in 2022, seen as key to firming up defence ties. During the visit, the Indian Defence Minister announced the gifting of 2 ALS Indian-made ambulances and 200 special winter clothing items, which were delivered by the Indian Defence Ministry in July 2023 to the Mongolian Armed Forces.
India is supporting the building up of Mongolia's first oil refinery in Dornogovi with a $1.7 billion soft loan, technical expertise, and construction by Indian firms. The project, set for 2026 completion, strengthens energy security and bilateral strategic ties. As part of the security cooperation, both sides hold the annual bilateral exercise "Nomadic Elephant," and India participated in the multinational "Khaan Quest" peacekeeping drill. India also provides developmental aid, including soft loans, IT collaboration, and capacity building.
Buddhist linkages remain one of the most important pillars of ties between the 2 sides. In 2022, India sent sacred Kapilvastu relics of Lord Buddha to Mongolia for an 11-day exposition at Gandan Monastery. Venerable Kushok Bakula Rinpoche served as India's ambassador to Mongolia.
BY
Navashree Nandini
Navashree Nandini works as a senior sub-editor and has over five years of experience. She writes about global conflicts ranging from India and its neighbourhood to West Asia to the US. She also covers US and Indian politics. Breaking complex news headlines into understandable explainers is her thing. When not in the newsroom, she is immersed in books about Indian politics. You can reach her at navashree.nandini@wionews.com

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Deputy Secretary Landau’s Meeting with Mongolian Foreign Minister Battsetseg www.mn.usembassy.gov

Deputy Secretary of State Christopher Landau met with Mongolian Foreign Minister Batmunkh Battsetseg on the margins of the United Nations General Assembly in New York yesterday. The two leaders reaffirmed their countries’ mutual interests and shared democratic values that underpin the U.S.-Mongolia Strategic Third Neighbor Partnership. They also discussed opportunities to expand economic ties between the United States and Mongolia.

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EBRD forecasts Mongolia's economy to grow by 5.8 pct in 2025 www.xinhuanet.com

Mongolia's economic activity remained robust in the first half of 2025, despite weaker mining-sector activity and a deteriorating macroeconomic environment, local media reported on Sunday, citing the European Bank for Reconstruction and Development (EBRD).
In its Outlook for Central Asian economies in 2025 and 2026, the EBRD forecasts growth of 5.8 percent for Mongolia's economy in 2025 and 5.5 percent in 2026, the Eagle News TV channel reported.
Mongolia's real gross domestic product (GDP) expanded by 5.6 percent in the first half of 2025, driven primarily by a strong rebound in the agriculture sector and continued expansion of the services sector, according to the EBRD.
Currently, Mongolia's economy depends heavily on the mining sector and on the export of mineral resources. Mining commodities, such as copper, iron ore and unprocessed or semi-processed gold, constituted 93 percent of Mongolia's total exports during the first eight months of 2025.

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D.Amarbayasgalan elected chairman of the MPP www.gogo.mn

The VIII session of the Mongolian People’s Party (MPP) Conference concluded at 8 AM on September 28. 
At the start of the session, the Counting Commission approved the voting procedure, stipulating that if no candidate secured two-thirds of the votes, the top contender would advance to a second round.
In the first round, candidate D.Amarbayasgalan received 58% of the votes, while G.Zandanshatar secured 14.3%. However, ahead of the second round, G.Zandanshatar boycotted the session and instructed his supporters not to participate.
During the re-registration, 321 members cast their votes, and D.Amarbayasgalan was elected chairman with 85.67% support. The meeting was chaired by MP J.Bat-Erdene, head of the MPP parliamentary group, with G.Gangamurun, a member of the conference, serving as deputy chair.
The MPP’s General convention is scheduled to be held on November 15.

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The Economist Spotlights Mongolia’s World Horse Day Initiative www.montsame.mn

The Economist magazine highlighted the remarks made by the President of Mongolia during the General Debate of the 80th Session of the United Nations General Assembly (UNGA)  in its weekly review, in connection with Mongolia’s initiative to establish World Horse Day and to promote equine heritage and culture.
At Mongolia’s initiative, beginning in 2025, July 11 has been designated and observed annually as World Horse Day.
In his address to the General Debate of the 80th Session of the UNGA on September 23, 2025, President of Mongolia Khurelsukh Ukhnaa spoke about the inseparable bond between the Mongolian people and their horses, and the crucial role horses have played throughout human history.
President Khurelsukh emphasized, “From the moment of birth, Mongolians grow up on horseback, and together with our trusted steeds, we have earned global renown and helped inscribe a remarkable chapter in the history of humankind. For this reason, the Mongolian people have placed the horse at the heart of our State Emblem, woven our State Flag from the mane and tail of our swiftest steeds, and created the haunting melodies of the morin khuur to stir the hearts of the world. We are a nation blessed with this unique heritage.
Throughout history, horses have made immense contributions to human livelihood, culture, civilization, and progress. To safeguard this heritage, to raise awareness of its significance, and to promote its continued appreciation worldwide, Mongolia initiated a resolution to designate July 11 of each year as World Horse Day. This resolution was adopted at the plenary meeting of the 79th Session of the UN General Assembly on June 3, 2024.”
Expressing gratitude on behalf of the horse-loving Mongolian people, President Khurelsukh stated from the UN rostrum that Mongolia deeply appreciates the support of all UN Member States for this resolution, which aligns World Horse Day with the date of Mongolia’s National Naadam Festival, inscribed on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity.
In connection with this initiative, The Economist, a globally respected publication, noted in its weekly review, “Amid all the high-minded speechifying at the UN assembly, Mongolia’s president used part of his address to praise the historical contribution of the world’s 60m horses. Khurelsukh Ukhnaa lauded our trusty steeds for being “integral to human livelihoods, culture and civilisations”, as he promoted his initiative for a UN World Horse Day. There are more horses than people in Mongolia, which is renowned for its equine culture.”
According to the National Statistics Office of Mongolia, as of 2024, the country’s human population stood at 3.5 million, while its horse population reached 4.6 million, confirming The Economist’s observation that “horses outnumber people in Mongolia.”
The draft resolution proclaiming World Horse Day was introduced by Mongolia and adopted at the plenary meeting of the 79th Session of the UNGA on June 3, 2024, with 56 co-sponsoring Member States, including: the Republic of Austria, the Kingdom of Bahrain, the Federative Republic of Brazil, the Republic of Korea, the People’s Republic of China, the Bolivarian Republic of Venezuela, the State of Qatar, the Kingdom of Lesotho, the Kingdom of Morocco, the Russian Federation, the Portuguese Republic, the Federal Republic of Germany, the Kingdom of Thailand, the Republic of Türkiye, Japan, the Kyrgyz Republic, the Republic of Kazakhstan, Turkmenistan, the Republic of Uzbekistan, and the Republic of Tajikistan.

 

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Foreign visitors to Mongolia reach 678,850 in first 9 months www.xinhuanet.com

Mongolia recorded a total of 678,850 inbound tourist visits by foreign passport holders in the first nine months of 2025, according to official data released by the Mongolian Tourism Organization on Saturday.
During the period, China has become one of the biggest sources of foreign tourists to Mongolia, followed by Russia and South Korea.
Currently, Mongolia's economy continues to rely most heavily on the export of mineral resources. Tourism promotion is considered one of the priorities for diversifying the country's economy and increasing the competitiveness of its tourism in the context of global competition.
According to the Ministry of Culture, Sport, Tourism and Youth, the Mongolian government has decided to continue the "Years to Visit Mongolia" tourism program until 2028 to promote the development of four-season tourism in the country.
The landlocked Asian country attracted a total of 727,400 foreign tourists in 2024, earning 1.6 billion U.S. dollars from the tourism sector.

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New Air Services Agreement Paves Way for Direct Flights Between Mongolia and Australia www.montsame.mn

At the Cabinet Session on September 24, 2025, the Government of Mongolia approved the draft Air Services Agreement between the Government of Mongolia and the Government of Australia and authorized the signing of the agreement.
Last October, representatives of the civil aviation authorities of Mongolia and Australia held bilateral talks, during which they initialed the draft agreement and signed a memorandum of understanding. The establishment of this agreement will provide the legal framework necessary to launch direct flights between the two countries. This is expected to enable domestic airlines to open new routes, expand their market reach, and connect to international transport and logistics networks, thereby extending Mongolia’s aviation network.
The agreement is also expected to bring significant benefits for Mongolian citizens currently studying, working, or residing in Australia, as well as for business travelers and tourists through reducing travel costs. More broadly, the deal is seen as an important step in enhancing bilateral relations, trade, investment, economic cooperation, and people-to-people exchanges between Mongolia and Australia.
Mongolia and Australia established diplomatic relations in 1972 and have since expanded their cooperation in politics, education, mining, trade, economics, culture, and civil aviation.

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CIDCA and UNDP Partner to Bring Solar Energy to Ulaanbaatar’s Ger Districts www.undp.org

The China International Development Cooperation Agency (CIDCA), the United Nations Development Programme (UNDP), and the Chingeltei District of Ulaanbaatar launched the “Upgrading Ger Districts in Ulaanbaatar Through Solar Photovoltaic System Implementation” project to tackle air pollution and accelerate Mongolia’s just energy transition.
Air pollution remains one of Mongolia’s most pressing challenges. In Ulaanbaatar, coal burning in ger districts contributes to nearly 60% of PM2.5 emissions. Consequently, indoor and outdoor pollution combined causes over 7,100 premature deaths annually and economic losses amounting to 10% of the nation’s GDP. By replacing coal-based heating with solar-powered systems equipped with heat storage technology and smart meters, the project aims to improve public health, cut greenhouse gas emissions, and serve as a model for clean energy expansion across the country.
Funded by the Global Development and South-South Cooperation Fund of China International Development Cooperation Agency (CIDCA), the project will support 450 households in Chingeltei District over the next two years. It builds on UNDP’s successful 2023–2024 pilot and represents a shift from one-time grants toward a sustainable, market-based approach for renewable energy deployment.
Among the key outputs are the installation of mini photovoltaic (PV) grids with battery storage and smart meters, household-level solar heating systems, and real-time monitoring for carbon credit verification. The project will also deliver community training programmes and awareness campaigns on renewable energy benefits. Public engagement will also focus on gender-responsive capacity-building and women’s leadership in renewable energy, with an aim that the transition to renewable energy creates opportunities for all and leaves no one behind.
Mr. Amartuvshin Amgalanbayar, Deputy Governor of the Capital City in charge of the Social Sector, Green Development, and Air and Environmental Pollution Affairs, stated "Renewable energy offers one of the most practical and effective solutions for tackling the severe air pollution challenges in Ulaanbaatar’s ger districts. I am confident that this project will help us bring cleaner air, healthier living conditions, and a more sustainable future for our people."
Mr. Manduul Nyamandeleg, Governor of Chingeltei District, emphasized the urgency of the transition and stated, “Our residents deserve clean air and affordable energy, and this initiative provides a practical, long-term solution to improve health, reduce costs, and support clean energy transition. With its success, we hope to see this model scaled up to benefit many more households in our district."
H.E. Shen Minjuan, Ambassador Extraordinary and Plenipotentiary of the People' s Republic of China to Mongolia, stated, that "The Government and people of China are pleased to support Mongolia in bringing clean, affordable energy to its citizens through CIDCA. This project reflects China’s commitment to green development and building a community with a shared future for humanity."
UNDP Resident Representative Ms. Matilda Dimovska highlighted the initiative’s role in driving systemic change and stated, "A just energy transition requires cooperation at all levels. With innovation, investment, and commitment, Mongolia has the potential to move away from coal dependency while ensuring that no one is left behind. We are thankful to CIDCA’s leadership and support in making it a reality.”
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.

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Marriott International Debuts in Mongolia www.breakingtravelnews.com

Marriott International, Inc. today announced a signed agreement with HTL Gateway LLC to open AC Hotels by Marriott Ulaanbaatar. This strategic move is set to mark Marriott’s entry in Mongolia, underscoring the company’s vision to strategically grow its presence across Asia Pacific. Expected to open in 2027, AC Hotel by Marriott Ulaanbaatar will reflect the brand’s signature design philosophy that harmonizes form and function, offering purposeful design, flexible spaces, and signature moments for a new generation of discerning business and leisure travelers.
The property is planned as part of a mixed-use development in the rapidly expanding Khan Uul District of Ulaanbaatar, strategically located along Buyant-Ukhaa Road with convenient access to the Central Business District, Sukhbaatar Square, and Chinggis Khaan International Airport. Surrounded by key demand drivers such as the Buyant Ukhaa Sport Palace, AIC Steppe Arena, and Yaarmag’s new commercial and residential hub, the hotel will be well-positioned to cater to both business and leisure travelers.
The hotel is slated to feature 190 thoughtfully designed guestrooms and suites, an all-day dining restaurant, a specialty restaurant, a grab-and-go AC Store, and a lounge and bar. Plans also include to feature a range of amenities including a heated indoor swimming pool, fitness center, spa, and dedicated spaces such as an AC Library. For meetings and events, the property anticipates featuring flexible facilities including a junior ballroom, function rooms, and breakout spaces.
“We are excited to expand Marriott International’s portfolio into Mongolia, a country that is emerging as both a dynamic business hub and a distinctive leisure destination,” said Duke Nam, Regional Vice President for Korea, Vietnam & Philippines, Marriott International. “This signed agreement reflects our confidence in Mongolia’s long-tern tourism potential and underscores our commitment to bringing diverse hospitality experiences to this growing market.”
“We are pleased to collaborate with Marriott International in Mongolia, a milestone that reflects the tireless dedication and many years of hard work by our team,” said Erkhes Battuul, Founder and Project Leader of HTL Gateway LLC. “The Mongolian government has placed strong emphasis on the tourism sector and is undertaking many initiatives to expand the country’s presence in international markets. Together with Marriott, we are confident that this signing will set new standards and open exciting new chapter in Mongolia’s hospitality industry.”
Mongolia welcomed more than 800,000 international visitors in 2024, a record high for the country, according to recent reports. The new hotel is expected to play an integral role in shaping the modern hospitality landscape of Ulaanbaatar, offering globally inspired design, intuitive service, and thoughtfully curated experiences for today’s travelers.

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Mongolia Gold Producer Erdene Resource Development Delivers First Gold Pour With District-Scale Expansion Pipeline www.

The gold mining sector has experienced renewed investor interest as global economic uncertainties and monetary policies continue to support precious metals demand. Erdene Resource Development (TSX:ERD) recently transitioned from developer to producer while maintaining significant growth potential across multiple projects in Mongolia's prolific mineral districts. The company's recent achievement of first gold pour, combined with its strategic positioning in one of the world's premier mining jurisdictions, offers investors exposure to both immediate cash flow generation and substantial exploration upside.
First Gold and Production Ramp-Up
Erdene Resource Development achieved a significant milestone with first gold production from its Bayan Khundii mine in September 2025. President and CEO Peter Akerley outlined the company's systematic approach to reaching full production capacity:
"We've always laid out a plan where we'll get to name plate over the next few months. So, by year end we'll be producing an average 7,000 ounces of gold per month at a head grade of about 4 g/t."
The technical characteristics of the Bayan Khundii deposit position it favourably within the industry cost curve. Akerley emphasised the deposit's exceptional metallurgical properties:
"Bayan Khundii is spectacular really. It's almost devoid of sulfides. It's a gold with a little bit of silver mineralization and the recoveries are in the 93-95% range using a standard conventional crushed grind leach facility. Low retention times, low cyanide consumption."
The operation demonstrates strong fundamentals with manageable technical risks. The company employs conventional processing technology, reducing operational complexity and capital requirements compared to more exotic metallurgical processes. The high recovery rates and low reagent consumption contribute to strong operating margins, particularly important in the current inflationary environment affecting mining operations globally.
Strategic Partnership and Capital Structure
Erdene operates through a 50-50 joint venture structure with Mongolian Mining Corporation, providing both operational synergies and risk mitigation. This partnership arrangement ensures local expertise and government relations while maintaining strategic control through unanimous decision-making processes. The joint venture structure has proven effective in Mongolia's regulatory environment, where local partnerships often facilitate project advancement and operational success.
The company's capital structure positions it well for growth financing. With total project investment of approximately $115 million in capital expenditure and $60 million in debt financing, the operation maintains reasonable leverage levels. Akerley noted the debt repayment strategy:
"The debt portion of that which is $60 million to MMC and $50 million for the development bank will be paid off as rapidly as possible. The only exclusion to that will be the money we invest in exploration."
At current gold prices, the company projects debt retirement by mid-2026, providing increased financial flexibility for expansion initiatives. The 13.8% interest rate on development financing, while elevated, reflects the project finance nature of the facility and decreases in significance with accelerated repayment schedules enabled by strong cash generation.
Interview with President & CEO Peter Akerley
Exploration Portfolio and Resource Expansion
The company's exploration strategy focuses on near-term, high-probability targets that can leverage existing infrastructure and processing capacity. The immediate priority involves expanding the Bayan Khundii pit through systematic drilling programs targeting extensions to the west and south of current reserves.
"We've identified expansion opportunities to the west and south regardless of the gold price increase. Those areas we will begin drilling on as soon as a few weeks from now and begin to look at what potentially is another 150,000 ounces of gold as we move south and west of that pit which contains about half a million ounces."
The Dark Horse deposit represents a particularly compelling near-term development opportunity. Located 2.5 kilometers north of the main operation, this supergene oxide zone contains high-grade mineralization at surface. The oxide nature of Dark Horse mineralization creates potential for alternative processing routes, including heap leach operations that could complement the existing CIP plant. This optionality provides operational flexibility and potentially lower-cost production streams for future development scenarios.
District-Scale Development Potential
Beyond immediate expansion opportunities, Erdene controls a district-scale land position with multiple development scenarios. The Altan Nar project, located 16 kilometers north of Bayan Khundii, contains approximately 500,000 ounces of gold equivalent in a polymetallic system including gold, silver, lead, and zinc mineralization.
The polymetallic nature of Altan Nar presents both opportunities and challenges. While requiring additional metallurgical testing and potentially different processing routes, successful development could significantly enhance the company's production profile. Akerley noted the scale potential:
"With some expansion at Bayan Khundii and Altan Nar coming on, we could start to envision a 200,000-250,000 ounce per year production profile from the two."
The company has allocated substantial resources to systematic exploration across its portfolio. For 2026, exploration expenditures are budgeted at $7 million, representing significant investment in resource definition and expansion activities. This exploration focus on the top 200 meters of potential deposits aligns with the company's strategy of developing near-surface, lower-risk opportunities that can utilise existing infrastructure.
Strategic Asset Diversification
Erdene's portfolio extends beyond gold production through its Zuun Mod molybdenum project and Ulaan copper-gold exploration license. The molybdenum asset provides exposure to industrial metals markets, particularly serving Chinese demand where significant deficits exist.
Akerley highlighted the molybdenum opportunity:
"There's no question today that there is a deficit. China's importing a significant amount of molybdenum today and that's pushed the price up, which had been hovering around $20 as stable in that last four years or so, into that $25 price range."
The Ulaan license represents a high-risk, high-reward exploration play positioned within 5 kilometers of the world-class Oyu Tolgoi copper-gold project. While early-stage, this asset provides exposure to potential district-scale copper-gold discovery in one of the world's premier porphyry belts.
Market Position and Institutional Appeal
The company recently completed a 6-for-1 share consolidation to attract institutional investment and improve trading liquidity. This corporate action reflects management's recognition of their evolving investor base as the company transitions from exploration to production. Akerley explained regarding the consolidation's impact on institutional accessibility,
"We felt that we needed to have that higher share price that gets you above certain thresholds amongst various groups indices exchanges and I believe that's worked."
The producer re-rating potential remains significant as the company demonstrates consistent operational performance and cash flow generation. Gold producers typically command premium valuations compared to development-stage companies, particularly those with growth potential and operational excellence.
The Investment Thesis for Erdene Resource Development
Immediate Cash Flow Generation: Invest in a newly producing gold mine with 93-95% recoveries and low technical risk, providing immediate exposure to gold price appreciation through operational cash flows.
Expansion Optionality: Target companies with near-term resource expansion potential, as Erdene's pit extensions could increase reserves by 30-40% with minimal additional permitting or infrastructure requirements.
District Consolidation Strategy: Consider the portfolio approach to gold investing, where multiple deposits within trucking distance can leverage shared infrastructure and reduce per-ounce development costs.
Jurisdictional Diversification: Evaluate Mongolia as an alternative to traditional gold mining regions, offering stable mining laws, experienced local partnerships, and proximity to Asian gold markets.
Producer Re-rating Potential: Focus on companies transitioning from developer to producer status, as institutional recognition and valuation multiples typically expand following successful production commencement.
Debt Reduction Timeline: Monitor the company's debt repayment schedule through 2026, as reduced leverage should improve financial flexibility and potentially lower cost of capital for growth initiatives.
Exploration Leverage: Assess the exploration spend relative to potential resource additions, as Erdene's $7 million annual budget targets high-probability extensions rather than grassroots discovery programs.
Erdene Resource Development represents a compelling investment opportunity within the gold mining sector, combining immediate production cash flows with substantial growth potential across multiple deposits. The company's successful transition to producer status, coupled with its systematic approach to resource expansion and operational excellence, positions it favourably for continued value creation. The 50-50 joint venture structure provides both operational stability and local expertise while maintaining strategic flexibility.
With debt reduction projected by mid-2026 and aggressive exploration programs targeting near-surface extensions, the company offers investors exposure to both current gold production and future growth potential within Mongolia's established mining jurisdiction. The district-scale land position, combined with management's proven execution capabilities, suggests significant potential for continued resource expansion and production growth over the coming years.
Gold Market Fundamentals Support Producer Investment Strategy
The current gold market environment reflects a complex interplay of monetary policy uncertainty, geopolitical tensions, and evolving central bank strategies that collectively support sustained precious metals demand. Global central banks have maintained accommodative monetary policies despite inflationary pressures, creating conditions where gold serves as both an inflation hedge and currency debasement protection. Institutional investors increasingly recognise gold's portfolio diversification benefits, particularly as traditional asset correlations break down during periods of market stress.
Central bank gold purchases have reached multi-decade highs as monetary authorities seek alternatives to dollar-denominated reserves, creating sustained physical demand that supports price floors. Asian markets, particularly China and India, continue demonstrating strong retail and investment demand growth, providing geographic diversification for gold consumption patterns. The mining industry's capital discipline following previous cycles has resulted in limited new supply additions, creating favourable supply-demand dynamics for existing producers.
Erdene Resource's positioning within this macro environment appears particularly advantageous given its low-cost production profile and expansion optionality. As Akerley noted regarding their operational advantages using a standard conventional crushed grind leach facility, low retention times, and low cyanide consumption. This operational efficiency positions the company favourably within the industry cost curve, enabling sustained profitability across various gold price scenarios while providing leveraged exposure to price appreciation.
TL;DR Summary
Erdene Resource Development successfully transitioned to gold production in September 2025 with exceptional 93-95% recovery rates and projects 7,000 ounces monthly by year-end. The company plans debt-free status by mid-2026 through strong cash flows while investing $7 million in exploration targeting 650,000+ total ounces across three Mongolian projects. Near-term expansion could increase production to 200,000-250,000 ounces annually, supported by district-scale infrastructure and high-grade surface deposits requiring minimal additional development capital.

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