Prime Minister Raises Demands on Oyu Tolgoi Project in Meeting with Rio Tinto www.montsame.mn

 Prime Minister Zandanshatar Gombojav met on March 9, 2026, with officials led by Katie Jackson, the Chief Executive of Copper at Rio Tinto, and presented demands regarding the Oyu Tolgoi project.

In January 2026, Prime Minister Zandanshatar sent a letter to the management of Oyu Tolgoi LLC and Rio Tinto Group, outlining a number of conditions aimed at ensuring Mongolia’s interests in the Oyu Tolgoi project. In a reply dated February 5 this year, Simon Trott, Chief Executive of Rio Tinto, reaffirmed the company’s position to continue open and constructive negotiations based on the shared interest of ensuring the project’s long-term, stable, and successful operation. Following this exchange, officials led by Katie Jackson have arrived in Mongolia and presented their proposals on issues including management fees and the high interest rates on shareholder loans during the meeting with the Prime Minister.

Prime Minister Zandanshatar said that while it was commendable that Rio Tinto had shown respect for negotiations with the Government of Mongolia and arrived with certain progressive proposals, the suggestions were insufficient and therefore could not be accepted.

He reiterated that he remains firm in the position first expressed in 2009 that the principle of “mutual benefit” has not been adequately upheld in the Oyu Tolgoi project. Referring to Article 6.2 of the Constitution and Resolution No. 120 adopted by the State Great Khural in December 2025 regarding Oyu Tolgoi, the Prime Minister outlined the demands aimed at implementing these provisions.

The demands include:

Raising Mongolia’s share of benefits from the Oyu Tolgoi project to more than 60 percent.
Significantly reducing the interest rate on shareholder loans.
Lowering management fees and ensuring that Oyu Tolgoi LLC becomes operationally independent in terms of management from 2030.
Distributing dividends to Mongolia by 2026.
Resolving issues related to the licenses of Entrée Resources in accordance with Article 6.2 of the Constitution, which stipulates that the majority of benefits from natural resources must accrue to the people.

Prime Minister Zandanshatar noted that it is time to resolve long-standing issues related to the Oyu Tolgoi project that have been under discussion since 2009, including those that have remained unresolved following the 2019 constitutional amendments.

“There is a principle that the Mongolian people are the rightful owners of their natural wealth,” he said. “Under the current arrangement, Mongolia would receive dividends from the Oyu Tolgoi project only after 20 to 30 years, which does not align with the principle of mutual benefit. The idea that Mongolians should own their natural wealth is a right guaranteed to the people under the Constitution.”

Chief Executive Katie Jackson stated that Rio Tinto will continue negotiations aimed at increasing the benefits of the Oyu Tolgoi project and strengthening mutually beneficial cooperation, and expressed the company’s willingness to work with the Government of Mongolia.

Discussion on Forests, Water and Rangelands to Be Held Ahead of COP17 in Mongolia www.montsame.mn

A meeting and discussion to highlight the importance of forests, water, and rangelands will take place on the 27th of this month, in conjunction with the upcoming COP17—the United Nations Convention to Combat Desertification Conference of the Parties, hosted by Mongolia, and in observance of the International Day of Forests.

According to the Forest Agency of Mongolia, the discussion aims to strengthen Mongolia’s participation in COP17 through improved cross-sector coordination and to increase the involvement of civil society organizations.

Representatives from the Office of the President of Mongolia, the Forest Agency, the Water Agency of Mongolia, the COP17 Secretariat, the Billions of Trees National Movement, and the National Green Lab met to discuss stakeholders, topics, the meeting agenda, and the significance of the event.

During the meeting, participants discussed the format and program of the event, as well as ways to increase stakeholder and civil society organization participation. They explored opportunities to strengthen cooperation in the forest, water, and rangeland sectors. An organizing working group was also established, and the parties agreed to cooperate in exchanging information and preparing for the event. Last year, the International Day of Forests was marked on March 21 under the theme “Forests and Food.”

According to the Professional Council on Forest Resources, forests cover 13.6 million hectares of Mongolia’s total territory of 156.4 million hectares, accounting for 8.71 percent. Previously, it was estimated that forests covered around 8–9 percent of the country’s territory, or approximately 14–15 million hectares.

Rio Tinto helped remake the Mongolian economy. Now, the country is putting its hand out for more (opinion) www.thenightly.com.au

In 2011, Mongolia’s best chance to make its mark on the world since Genghis Khan began operating: a giant copper mine built by Rio Tinto on the barren lands of the Gobi Desert.

Today, the Mongolian government, which owns 34 per cent of the Oyu Tolgoi project, is engaging in what looks like a shakedown of a great Australian company.

When the deal was struck, Rio Tinto agreed to cover Mongolia’s share of the $25 billion construction cost through a commercial loan.

Thanks to budget blowouts the bill went up, while the mine almost singlehandedly remade the Mongolian economy as the electric-vehicle revolution drove huge demand for copper.

Now, Mongolia wants Rio Tinto to cut the interest charged on its share of construction from around 11 per cent to 6 per cent, the Financial Times reported Tuesday.

A showcase
The attempt to renegotiate a contact struck decades ago, following years of litigation against Rio Tinto by the Mongolian government, is an example of why Western companies are wary of doing business in the developing world.

Mongolia could not have built the mine without foreign expertise or capital. The Australian-British company decided to make Oyu Tolgoi, also known as OT, a showcase of modern mining technology and economic development.

Sensors embedded in the ore allow the miners to determine on a daily basis the most efficient way to work. By 2030, OT is expected to be the fourth-largest copper mine in the world, producing enough of the mineral to build more than 6 million electric cars a year.

The workforce, which is 97.5 per cent Mongolian, suffers injuries at one third the rate of the rest of the company.

Unfortunately, the government is experiencing buyer’s remorse over a deal that means, thanks to the cost overruns, it may not receive dividends until 2037 instead of the original 2017 plan. That is too far away for the politicians who control a country that ranks 124th out of 182 countries on the Transparency International corruption index.

The government is playing victim, arguing it was deceived in a deal that took years to negotiate and was heavily scrutinised across the country and internationally. “Mongolia is not getting the dividends from the project and it is not fair,” a senior official told the FT.

Bad Faith
Rio Tinto, which is also being sued by Mongolia over alleged tax underpayments, is being publicly conciliatory, presumably concluding that calling out bad-faith behaviour won’t help in Ulaanbaatar’s yurts of power.

“We are engaged in active negotiations with the Mongolian Government,” a Rio Tinto spokesperson said on Tuesday. “These discussions reflect our continued commitment to working together to achieve Oyu Tolgoi’s full potential for the benefit of all partners.”

One of greatest economic problems across the developing world is the failure of resources projects to help regular people. Poor governments aren’t equipped to manage the huge sums of money often generated by energy and mineral projects. International agencies have spent decades working on the problem, with limited success.

Even rich companies such as Australia are sometimes tempted to change the rules after foreign companies have invested billions. The buyers of Australian gas, for example, are wondering if they can count on Australia as a reliable source of energy after the government said it would impose export restrictions on gas from 2027 to try to lower power bills.

If Rio Tinto refuses Mongolia’s demands, the government might increase the taxes on copper exports. Not only would shareholders be hurt, so would other poor countries hoping to attract the world’s biggest mining companies to turn their dirt into wealth.

PM criticises Rio Tinto over Oyu Tolgoi terms, calls for fairer benefits for Mongolia www.gogo.mn

Prime Minister G.Zandanshatar, Minister of Industry and Mineral Resources G.Damdinnyam, and Director of "Erdenes Mongol" B.Davaadalai met with the leaders of the Copper Group of "Rio Tinto" company.

During the meeting, Prime Minister G.Zandanshatar said, "I have said before that the owner knows his business and the shore protects its water. You can't take the gold and throw it away. We don't like the answers, to be honest. The management fee was said to be 40%, but it has become 30%.

The loan interest rate is twice as high as what is being paid to us by global banking and financial institutions. It is wrong. One side benefits from the difference in loan interest rates, and the other side does not pay dividends. We believe that it is unbalanced and unfair. Mutual benefit is our demand. We must implement this demand of the parliament. The most important thing is that the Mongolian people and parliament are unhappy with the unfairness.

Why is it unfair? They are making a profit from the interest on loans that are being given.

The main problem is that we are creating debt. We own dividends for 20 or 30 years, and we cannot control this activity. We have no voting rights. I wonder why it is beneficial to own 34% of the board of directors. We asked in 2019 and now we are asking again. We are talking about the 34% issue. This has turned us into a high-interest loan mechanism. It does not even pay dividends. What good is this 34% to us, citizens and parliament are asking.

Royalties are a normal norm that any business pays. "Oyu Tolgoi" is paying four times less royalties than Erdenet, or  License fee for exploitation and exploration of minerals. 

What is the price of copper and gold in the old feasibility study now? It is not our fault that the funding has increased due to the change in the feasibility study of the underground mine. In fact, it is the fault of the party that was obligated under the Investment Agreement. Why should Mongolia bear all this blame? All this makes the Mongolian people and the Mongolian parliament feel cheated. If there are no tangible results at the work level, we do not know what decisions will be made about "Entree" and the deposits. I hope you all understand. In the context of changing world order, the business will continue to be real "We are concerned about the risk of this. Thank you."

At this time, the government announced that it reminded the Mongolian people that the majority of the benefits of the Oyu Tolgoi project should go to the Mongolian people.

Former Prime Minister Ch.Saikhanbileg said in an interview with NTV on Wednesday, "It is only in the Oyu Tolgoi underground mining development plan that the majority of the benefits of the project will go to the Mongolian side. This sentence is not found in any other agreement or document.

However, since L.Oyun-Erdene’s government has canceled the underground mining financing plan, we must urgently formalize this provision," he said.

From Rio Tinto, the meeting was attended by Katie Jackson, Director of the Copper Group, R.Amarjargal, Director of Rio Tinto Mongolia, L.Munkhsukh, CEO of Oyu Tolgoi, and other officials.

Mongolia presses Rio Tinto to rewrite ‘unfair’ terms of $18bn Oyu Tolgoi mine www.ft.com

Talks over copper project would be latest renegotiation as global sector grapples with wave of resource nationalism

Mongolia is seeking to renegotiate the “unfair” commercial terms of Rio Tinto’s giant $18bn Oyu Tolgoi copper mine, as rising prices for the metal and a recent electoral shift contribute to a growing political impetus to change the terms of the 17-year-old deal.

Top Mongolian officials including Prime Minister Gombojavyn Zandanshatar, who took office last summer, are meeting this week in Ulan Bator with Rio executives including head of copper Katie Jackson to discuss the terms of the Oyu Tolgoi agreement.

The prime minister warned Rio executives in a meeting on Monday that the current deal was “unfair” and that “this whole situation feels like the Mongolian people and the parliament are being deceived”, according to video footage seen by the FT.

A rising tide of resource nationalism has led several of the world’s biggest mining projects to be renegotiated as governments seek more favourable terms.

Freeport-McMoRan last month received a permit extension for its Grasberg copper mine in Indonesia following years of talks under a deal in which the government will increase its stake in the project.

Under the terms of the original Oyu Tolgoi agreement struck in 2009, the government of Mongolia owns 34 per cent of the copper and gold mine, held through state-owned mining company Erdenes Mongol Group.

To fund its share of the capital expenditure needed to develop the mine, the government took out a multibillion-dollar loan from Rio Tinto at a floating interest rate that is currently more than 11 per cent. Repeated cost overruns and delays at the project have extended the timeline for when the government will start to receive dividends from 2017 to around 2037.

Among the government’s key demands are for Rio to reduce the interest rate on the loan and cut the annual management fee it charges for the project, according to Davaadalai Batsuuri, chief executive of Erdenes Mongol Group, who has been participating in the negotiations.

“Mongolia is not getting the dividends from the project, and it is not fair. That is the underlying point,” he told the FT.

The Mongolian proposal would reduce the interest rate on the loan to less than 6 per cent, on par with the interest rate for Mongolia’s other sovereign lending, and phase out Rio’s management fee, which Davaadalai estimates to be roughly $150mn-$200mn a year.

Davaadalai warned that if the negotiations with Rio go poorly the government could increase the rate of export tax the company pays on copper exports — currently around 5 per cent.

Oyu Tolgoi is Rio’s biggest copper mine under development and will be the world’s fourth largest by 2030, producing about 500,000 tonnes of the metal a year.

“We are engaged in active negotiations with the Mongolian government,” Rio said in a statement. “These discussions reflect our continued commitment to working together to achieve Oyu Tolgoi’s full potential for the benefit of all partners.”

The mine is currently producing copper from its open pit while building out its underground operations. Rio Tinto has been forced to redesign its underground expansion after failing to strike a licensing agreement with Entrée Resources, which holds the mining licence for a neighbouring area despite years of discussions.

Rio has asked for the government’s help to secure an agreement with Entrée, whose licence covers part of the underground area that was originally proposed. The government last year established a temporary oversight committee to examine the issue.

Separately, Rio Tinto is facing a tax probe in Mongolia, where authorities allege it has underpaid about $450mn largely because of accounting differences related to depreciation during the 2021 and 2022 tax years. The tax dispute is working its way through the courts. 

Four years ago, Rio agreed to waive about $2.4bn of the government’s loan as both sides vowed to “reset” the relationship.

However, that truce has not held and the prime minister has made the renegotiation a top priority.

Upcoming elections next year, along with near-record prices for copper and gold, have also raised the stakes.

“The public are going to ask what the government has done. If there is no visible outcome, there will be some protests,” said Davaadalai.

China highlights major gas pipeline work with Russia to boost energy supply amid Iran tensions www.msn.com

China is signaling a major push to secure more natural gas from Russia, raising curiosity and attention in global energy markets. The country’s draft five-year plan has included references to two key pipelines that transport Russian natural gas, potentially putting the long-discussed Power of Siberia 2 pipeline back into the spotlight. This move comes amid ongoing tensions in West Asia, where conflicts have created uncertainty in energy supplies.

China’s New Five-Year Plan Highlights Gas Pipeline Work
China recently released the draft version of its development blueprint for 2026 to 2030 during the annual session of its top legislature. Among the various infrastructure and energy projects, the plan specifically mentions advancing preparatory work on two major pipelines. One of these is widely believed to refer to the Power of Siberia 2 project.

Power of Siberia 2 is designed to bring natural gas from Russia to China through Mongolia. If completed, it would stretch around 2,600 kilometers (1,615 miles) and could deliver up to 50 billion cubic meters of gas per year. Analysts say this pipeline could significantly strengthen China’s energy security at a time when international conflicts, including a war in Iran, are causing energy price volatility worldwide.

Trump downplays rising gas prices as US-Iran conflict disrupts oil markets globally

Despite this inclusion in the five-year plan, experts caution that work on the pipeline is far from immediate. Russia and China still need to resolve issues regarding ownership stakes, construction costs, and the price of gas that will flow through the pipeline. Both countries will need to settle these details before they can begin full-scale construction.

Strategic Cooperation with Mongolia
The pipeline is not just a bilateral project between Russia and China; Mongolia also plays a key role. Earlier this year, Mongolia’s government held talks with Chinese energy officials, during which both sides agreed to intensify cooperation on a Russian gas pipeline passing through Mongolian territory.

This comes after a legally binding memorandum signed in September during trilateral talks in Beijing. The agreement outlined the construction of two pipelines: Power of Siberia 2 to China and the Soyuz Vostok transit gas pipeline through Mongolia. While exact financial details remain unclear, discussions suggest that Russia and China may share both the costs and benefits of the Mongolian section of the pipeline.

Russia’s Iskander missile production rises threefold, fueled by growing industrial ties with China

Previously, Russia’s Gazprom had a near-monopoly over the Mongolian segment. Current discussions indicate that China may now become more involved in the construction and financing of this section. This development is seen as a sign that momentum is building toward a final agreement among the three countries.

Pipeline Importance Amid Global Energy Challenges
The Power of Siberia 2 pipeline project has been under discussion for nearly two decades, with multiple delays since talks began in 2006. Its estimated cost is around $13.6 billion. Once operational, it would provide China with a substantial and reliable supply of natural gas.

Global energy markets are currently experiencing significant disruptions due to geopolitical tensions in West Asia, including the ongoing war in Iran. These events have put additional pressure on countries to secure alternative sources of energy. For China, expanding gas imports from Russia could help offset shortages and stabilize domestic energy supply.

The pipeline would not only serve China’s growing energy needs but also reduce its reliance on volatile energy regions. Analysts note that while the draft five-year plan is a strong indicator of intent, actual construction will take years and require careful coordination between Russian, Chinese, and Mongolian authorities.

Poland steps in against Russia’s energy war, boosting gas flows to keep Ukraine running

While China has not set an official timeline, including the project in the national development plan signals that the country is prioritizing it. Observers say that once China and Russia finalize financial and technical agreements, they could begin preparatory work, marking a significant step in their energy cooperation.

The project offers benefits beyond energy security. By involving Chinese companies in construction and engineering, China could gain experience and strengthen its influence in large-scale international energy projects. The initiative highlights the strategic nature of energy diplomacy in the region and shows how countries tie infrastructure investments closely to geopolitical considerations.

The post China highlights major gas pipeline work with Russia to boost energy supply amid Iran tensions appeared first on Deftechtimes.

Mongolia's #1 rockers The Hu return to the UK and Europe

Innovative Mongolian rock trailblazers The HU have announced a headline UK and European tour for September and October 2026, with SKÁLD as special guests. The band will also join Iron Maiden at Knebworth Park on July 11 for the “Run For Your Lives” tour stop, alongside The Darkness, Airbourne, and The Almighty.

The band will bring their distinctive sound and commanding live show to iconic stages across the UK and Europe. Kicking off in Edinburgh in September, the tour’s UK leg will see them play Bristol, Bournemouth, Newcastle, Belfast, Dublin (IE), Birmingham, London, Manchester and Norwich, before continuing on to mainland Europe in cities like Berlin, Paris, Brussels, Warsaw, Zurich and more. The 23-date will span nine countries.

Speaking about their excitement for the upcoming shows, The HU said,  “What is up, our UK and Europe fans? It has been a while since we came to you. Our new setlist is full of hope and energy and as per The Hu fashion, we will have a brand new performance with fiery attitude. Come to our long-awaited shows and let’s have some fun together!“

UK & European Tour Dates:

Spotify Presale – Thursday, 5th March 2026 – 10:00 AM Local

General On Sale – Friday, 6th March 2026 – 10:00 AM Local

Before their UK and European headline run, The HU will co-headline a North American tour with Apocalyptica from May 12 to June 7. They’ll also join Rob Zombie and Marilyn Manson on the “Freaks On Parade” U.S. tour with Orgy, kicking off August 20 in West Palm Beach, FL. Tickets are on sale now at The HU‘s website HERE.

The HU continue to push rock’s boundaries with their latest single, “The Real You”, released earlier this year via Better Noise Music. The track blends Western rock elements with a heavy, atmospheric sound, driving rhythms, and gritty, menacing vocals, taking their signature Hunnu Rock, which fuses traditional Mongolian instruments and throat singing with modern rock to breathtaking new heights.

“The Real You” is available on all digital outlets HERE and the video can be seen HERE.

Following the release of “The Real You”, The HU have also teased further releases for March 2026.

ABOUT THE HU

The HU have passionately and unforgettably brought Mongolian music to the music frontlines. In November 2022, The HU became the first-ever rock/metal band to receive the prestigious UNESCO “Artist for Peace” Designation at UNESCO’s headquarters in Paris, France by UNESCO Director-General Audrey Azoulay.

Previous recipients include Celine Dion, Shirley Bassey, Sarah Brightman, Herbie Hancock, Marcus Miller, and World Orchestra For Peace. With over 961 million all-time streams, 483 million video views, #1 charting albums, multiple sold-out headlining tours, prestigious government honors and awards, collaborations with several of rock’s biggest names, and featured music on video games including EA Games‘ Star Wars Jedi: Fallen Order, THE HU have cemented their status as a global powerhouse.

Mongolia, Finland to Strengthen Cooperation in Education Sector www.montsame.mn

Education Minister Naranbayar Purevsuren visited Finland from June 4 to 6 and participated in the 15th meeting of the Mongolia–Finland Intergovernmental Commission. During the visit, he also held an official meeting with Finland’s Minister of Education and Culture, Anders Adlercreutz.

During the meeting, the sides highlighted the active development of cooperation in the education sector between Mongolia and Finland, exchanging views on expanding collaboration, increasing Finnish investment in education, and implementing joint projects and programs, as reported by the Ministry of Education.

To strengthen partnerships between universities in the two countries, we held an online meeting for the first time in 2025. The meeting was attended by representatives from the National University of Mongolia, Mongolian National University of Education, Mongolian University of Science and Technology, Mongolian University of Life Sciences, as well as the University of Oulu, Aalto University, University of Eastern Finland, and the University of Helsinki. The ministers discussed opportunities for cooperation and agreed to organize these activities regularly to support collaboration between universities.

The sides also expressed their intention to deepen cooperation by strengthening Mongolia’s teacher training system, implementing joint research and academic projects, and launching exchange programs for teachers, education researchers, and students.

Minister Adlercreutz expressed support for enrolling Mongolian students at Finnish universities starting from the 2026–2027 academic year under the President’s Scholar-2100 Program, which provides opportunities for Mongolian youth to study at leading universities worldwide.

With funding from Finland’s Ministry of Education and Culture, researchers from the University of Turku have conducted comprehensive research on bullying among school students and developed a systematic approach based on the findings. The resulting KiVa Anti-Bullying Program is currently being implemented successfully in over 20 countries worldwide.

Minister Naranbayar invited the team that developed the KiVa program to Mongolia to conduct a comprehensive assessment of conditions in general education schools, develop a joint program, and pilot its implementation in schools. The sides agreed to cooperate on the initiative.

Special Flight to Repatriate Mongolian Citizens from Middle East www.montsame.mn

The Ministry of Foreign Affairs of Mongolia announced that a special flight will be operated to repatriate Mongolian citizens currently staying in the Middle East.

According to a decision by the Government of Mongolia, MIAT Mongolian Airlines plans to operate an Ulaanbaatar-Dubai-Ulaanbaatar flight on March 10, 2026, specifically arranged for Mongolian citizens residing in Middle East countries.

Citizens can get information about purchasing tickets and other flight-related information through the following contacts:

Phone: +976-11-333999
Email: cc@miat.com
Facebook chat: MIAT Mongolian Airlines
For citizens abroad (Viber): +976-94001476

TMK smashes out new Mongolian gas record www.thewest.com.au

TMK Energy has smashed out another new gas production record with a significant increase to its previous best daily tally at the company’s Pilot Well project, part of its Gurvantes XXXV coal seam gas project in southern Mongolia.

Remarkably, the best producing well at the project – LF07 – has really turned on the afterburners, with a near 400 per cent boost to production numbers in the past few months and a nine-fold increase since August last year.

The company set a new daily gas record of more than 900 cubic gas metres, or more than 31,800 standard cubic feet per day (scfd), in recent days.

The rapid increase in gas production has firmly placed its previous best daily output of 25,000 scfd well and truly in the shade. Gas numbers, predominantly from LF-07, have been ramping up strongly week by week, with production in the first week of March averaging 873 cubic gas metres per day.

Recent production at Pilot Well has delivered a massive 50 per cent uplift over February’s daily gas rate, underscoring the project’s enormous potential as more water is continually pumped out of wells deeper in the structure. Water production remains steady at about 500 barrels per day.

The significant increase in gas numbers is primarily due to the performance of LF-07, the most recent well drilled, which sits up-dip in the subsurface structure.

TMK plans to drill additional wells identical to LF-07 to further ratchet up gas output in the short term, with new locations already identified.

Our cautious optimism has turned to high levels of excitement in recent weeks as we continue to see this week-by-week acceleration of gas production rates. Our expectation is for the gas rates to continue to materially increase from the Pilot Well project over the coming months as LF-07 and other wells reach critical desorption pressure and gas begins to be liberated from the coals at ever increasing rates.

TMK Energy chief executive officer Dougal Ferguson
Ferguson said the company is on the cusp of a major milestone with its plans to produce the first-ever commercial coal seam gas in Mongolia.

Average gas production in February of 583 cubic gas metres per day was down slightly on January’s number of 593 cubic gas metres, resulting from pressure build-up tests conducted at LF-01 and LF-04, with both wells shut in for 14 days and 7 days, respectively.

The pressure testing provides management with vital additional data on the reservoir pressure reduction rate – known as desorption – a key indicator of the project’s future success.

TMK believes the desorption pressure is moving closer to the level required to increase gas volumes significantly, with the huge surge in recent gas production confirming that its theory appears to be playing out.

Reservoir modelling last year outlined a clear path to achieving that perfect pressure and the continued water production of near-500 barrels per day is assisting in depressurising the reservoir towards desorption, lowering the reservoir pressure and assisting the gas to desorb from the coal seams.

Management believes the increased gas flow rates can support discussions with potential gas or power off-takers for its first gas-fired generator project. This includes the possibility of reviving a binding memorandum of understanding (MOU) signed with German power plant manufacturer Jens Energie 12 months ago.

The MOU would see TMK agree to supply gas from its Gurvantes XXXV project initially at a rate of 5000 cubic metres, with Jens to convert that gas into electricity for the local market using a German-imported gas-fired power plant to be installed under the arrangement.

The company is confidently looking beyond simply proving the wells can produce gas, as it plans to link the pilot wells and use its gas to generate on-site power, with any surplus to be potentially sold into the local grid as an early revenue stream.

Pilot Well spans 60 square kilometres in the Nariin Sukhait area of Mongolia’s vast countryside and has a contingent resource (2C) of 1214 billion cubic feet (BCF) of natural gas, making up Mongolia’s biggest gas resource. The project currently contains a prospective resource of 5300BCF across its total 8400-square-kilometre ground.

Mongolia is keen to transition into cleaner energy production, moving away from older-style forms of energy such as coal and instead accessing sources such as coal seam gas, which burns cleaner than other fossil fuels.

The sharemarket welcomed the news of the company’s surge in gas production, bumping up its price to a peak of 16.5 cents today for a solid 26.9 per cent gain during the day. A continued run of ever-increasing daily gas records might see the market keep an even closer watch on TMK.