1 GOLD AND COPPER PRICES SURGE WWW.UBPOST.MN PUBLISHED:2025/04/02      2 REGISTRATION FOR THE ULAANBAATAR MARATHON 2025 IS NOW OPEN WWW.MONTSAME.MN PUBLISHED:2025/04/02      3 WHY DONALD TRUMP SHOULD MEET KIM JONG- UN AGAIN – IN MONGOLIA WWW.LOWYINSTITUTE.ORG  PUBLISHED:2025/04/02      4 BANK OF MONGOLIA PURCHASES 281.8 KILOGRAMS OF PRECIOUS METALS IN MARCH WWW.MONTSAME.MN PUBLISHED:2025/04/02      5 P. NARANBAYAR: 88,000 MORE CHILDREN WILL NEED SCHOOLS AND KINDERGARTENS BY 2030 WWW.GOGO.MN PUBLISHED:2025/04/02      6 B. JAVKHLAN: MONGOLIA'S FOREIGN EXCHANGE RESERVES REACH USD 5 BILLION WWW.GOGO.MN PUBLISHED:2025/04/02      7 185 CASES OF MEASLES REGISTERED IN MONGOLIA WWW.AKIPRESS.COM PUBLISHED:2025/04/02      8 MONGOLIAN JUDGE ELECTED PRESIDENT OF THE APPEALS CHAMBER OF THE ICC WWW.MONTSAME.MN PUBLISHED:2025/04/01      9 HIGH-PERFORMANCE SUPERCOMPUTING CENTER TO BE ESTABLISHED IN PHASES WWW.MONTSAME.MN PUBLISHED:2025/04/01      10 LEGAL INCONSISTENCIES DISRUPT COAL TRADING ON EXCHANGE WWW.UBPOST.MN PUBLISHED:2025/04/01      УСТСАНД ТООЦОГДОЖ БАЙСАН УЛААНБУРХАН ӨВЧИН ЯАГААД ЭРГЭН ТАРХАХ БОЛОВ? WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     САНГИЙН ЯАМ: ДОТООД ҮНЭТ ЦААСНЫ АРИЛЖАА IV/16-НААС МХБ-ЭЭР НЭЭЛТТЭЙ ЯВАГДАНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     МОНГОЛБАНКНЫ ҮНЭТ МЕТАЛЛ ХУДАЛДАН АВАЛТ ӨМНӨХ САРААС 56 ХУВИАР, ӨМНӨХ ОНЫ МӨН ҮЕЭС 35.1 ХУВИАР БУУРАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     Б.ЖАВХЛАН: ГАДААД ВАЛЮТЫН НӨӨЦ ТАВАН ТЭРБУМ ДОЛЛАРТ ХҮРСЭН WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     1072 ХУВЬЦААНЫ НОГДОЛ АШИГ 93 500 ТӨГРӨГИЙГ ЭНЭ САРД ОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     Н.УЧРАЛ: Х.БАТТУЛГА ТАНД АСУУДЛАА ШИЙДЭХ 7 ХОНОГИЙН ХУГАЦАА ӨГЧ БАЙНА WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/02     “XANADU MINES” КОМПАНИ "ХАРМАГТАЙ" ТӨСЛИЙН ҮЙЛ АЖИЛЛАГААНЫ УДИРДЛАГЫГ “ZIJIN MINING”-Д ШИЛЖҮҮЛЭЭД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ТӨМӨР ЗАМЫН БАРИЛГЫН АЖЛЫГ ЭНЭ САРЫН СҮҮЛЭЭР ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/02     “STEPPE GOLD”-ИЙН ХУВЬЦААНЫ ХАНШ 4 ХУВИАР ӨСЛӨӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ҮЙЛДВЭРЛЭЛИЙН ОСОЛ ӨНГӨРСӨН ОНД ХОЁР ДАХИН НЭМЭГДЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2025/04/01    

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

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D. Oyunkhorol: Largest Construction Project of Public Private Partnership in Khushig Valley www.montsame.mn

We spoke with the Plenipotentiary Representative of the Government D. Oyunkhorol about the construction progress of Shine Zuunmod City in the Khushig Valley.
A year has passed since the development of the Master Plan for the Construction of Shine Zuunmod City and the decision to establish a Free Economic Zone in the Khushig Valley were issued. At what stage is now the Khushig Valley construction going on?
Focusing on decentralization of Ulaanbaatar and reduction of traffic congestion, the Government of Mongolia issued a number decisions to set up Shine Zuunmod City on a free economic zone of 31 thousand hectares in Khushig Valley with a population of 150 thousand, grounding on the new International Airport Chinggis Khaan. In April of the last year the Shine Zuunmod Development Master Plan and the Resolution on Creation of the Free Economic Zone were approved. Upon the approval of the Development Master Plan, we have been working to prepare infrastructure and legal policy documents as part of the implementation of the Master Plan. In the meantime, urban planning and legal policy documents of developed countries and countries that had successfully transitioned to market economy were studied and reflected in the planning.
As part of the first round of engineering preparatory measures, the financing of the 56.8 km flood protection canal, 50 km water supply and sewage line, and electricity supply work is being gradually settled, and the construction work is under way.
Infrastructure work is under way. When will the buildings and facilities’ construction work begin? Which of these big plans do you intend to start first?
Mongolia is making a plan to build a new city over 40 years after 1980. Building a city is not a matter of just starting to construct buildings and facilities. We aim to build up a pleasant city to live in by finely developing the legal environment, engineering and social infrastructures, and creating work places to attract human inflow, so as not to repeat the mistakes of previous city planning. The estimates of how to attract the flow of people was subtly developed in consultation with domestic and foreign researchers and experts. In this sense, no land was given to any enterprise in the Khushig Valley. Land will be allotted only according to the Master Plan and related detailed plans towards further development. In the first phase, we are working to intensify the construction of the Free Economic Zone.
How does the Government support the construction work?
The Prime Minister of Mongolia L. Oyun-Erdene announced the start of the major construction work to build a new city and a free economic zone in the Khushig Valley as part of the "New Revival Policy," and said, "In order to build a new city on the ground, it is necessary to entirely solve an issue of underground engineering infrastructure." Therefore, the Government of Mongolia has displayed leadership and decided to wholly resolve the infrastructure issue of the Khushig Valley. The Ministry of Construction and Urban Development has completed the necessary design drawings, the first round of partial infrastructure funding has been reflected in the state budget, and the infrastructure construction work is in progress. I would like to express gratitude to the staff of the Ministry of Construction and Urban Development who are working with passion and determination.
You said that, first of all, you will intensify the construction of the Khushig Valley Free Economic Zone. Will you please develop on this?
The core of the Free Economic Zone of the Khushig Valley will be tourism, trade and services. By now, about 450,000 tourists have visited our country, and 50 percent of them entered Mongolia through the "Chinggis Khan" International Airport in the Khushig Valley. This number will certainly increase in the future. Therefore, it is planned to construct a tourist hotel, entertainment center, indoor stadium, international conference and exhibition complex, transport and logistics center, industrial zone, trade and service center, duty-free goods center, international financial center and medical complex in the Khushig Valley Free Zone. According to this planning, we envisage to develop the service sector economy and create thousands of work places with high pay.
Can you clarify about the entertainment center and the indoor stadium?
Around 70% of the population of Mongolia is young people under the age of 35. A clear indication of this is that 30,000-40,000 people visited the shows organized at the central stadium this summer. During these events, five people were crammed into one square meter of space, which goes in no comparison with the standard of international music festivals, which should be one-three square meters per person. However, we in our country do not currently have a hall with the capacity to receive many spectators according to the standards of world music festivals. Therefore, it is planned to build a 20,000-seat indoor stadium for entertainment, shows, and sport events in the Free Economic Zone.
With a presence of the indoor stadium that meets international standards, Mongolian artists will get an opportunity to organize their shows and events without being confined to a single summer season. Besides, it will become possible to invite world-famous music groups, singers and artists to enjoy their performance in the country. This, in turn, will be a huge contribution to the development of the show and entertainment industries, as well as a big channel for attracting tourists.
What is going on with the issue of establishing a Casino in the Khushig Valley? How about the Casino Law?
Countries are developing casinos as a profitable business for income generation. Whilst 156 countries of the world had casinos so far, Japan, the United Arab Emirates and Thailand have decided to build casinos and have started construction. We have conducted research on the experience, positive and negative aspects, and legal environment of casinos in developing and developed countries, and cooperated with the working group of the Ministry of Justice and Internal Affairs. The Government submitted to the State Great Khural the Casino Law Draft in December 2022. Upon deciding to discuss it at the Parliament session, a working group of the Parliament has been established.
The UN COP-17 conference on desertification will be held in Mongolia. I heard that Khushig Valley Economic Free Zone was chosen as one of the places for the meeting.
The President of Mongolia Khurelsukh Ukhnaa, while participating in the conference of parties to the United Nations Framework Convention on Climate Change, made the decision to hold the 17th Conference of the Parties (COP17) of the United Nations Convention to Combat Desertification (UNCCD) in Mongolia. Altogether, 5000-7000 delegates from over 180 countries are expected to come to Mongolia to attend the conference. In 2019, approximately 6,000 people attended the 14th Conference of the Parties (COP) to the United Nations Convention to Combat Desertification (UNCCD) held in New Delhi, India. In 2022, about 7,000 people attended the COP-15 Meeting held in Abidjan, Cote D'Ivoire. In general, countries have experience in building a comprehensive complex for International Conferences according to standards for COP meetings. The United Nations sets requirements for the countries hosting the conference to have two large halls with 3,000 seats and 15 halls with a capacity of 200-300 people, equipped with advanced technique. On top of that, there will be numerous challenges, starting from ensuring security of the meeting, protection from any risk to road closures. Therefore, it is possible to include the conference halls in the planning of the International Conference and Exhibition Complex in the Khushig Valley Free Economic Zone. This opens up an opportunity to develop "MICE" (meetings, incentive programs, conferences, exhibitions/events, entertainment) or tourism packages.
What is the main reason for holding the COP-17 conference in the Khushig Valley Free Economic Zone?
It is advantageous for closeness to the airport, the infrastructure issues would have been resolved, and there is a healthy vacant land that can be developed. The free zone itself has a special visa regime and is unique in that it operates a one-stop service center for foreign investors, enterprises, and individuals, providing many government services such as visas, taxes, and permits. It also has the advantage of providing tax incentives to enterprises that participate in the zone development. In anticipation of this big conference, conference and exhibition complex, hotels, and ancillary service centers that meet international requirements will be constructed which would enable to hold international conferences in the future.
In addition to starting the basic construction of the new city, Mongolia will become the country that hosts the United Nations conference in a new environment with eco-friendly and green planning.
What are the stages of the construction of the Free Economic Zone and how long will it last?
It is planned to fully complete the construction of the Khushig Valley Free Economic Zone by 2030. Foreign and domestic investments are crucial to intensify the development. As for Mongolia, the amount of foreign direct investment continues to decrease due to the external situation, the rate of inflation, and the border and customs policy of neighboring countries. Real risks in the domestic economy will cause considerable difficulties in raising capital from the international market grounding on the past experience. Therefore, attracting financial flows from foreign banks and financial institutions to the domestic economy, and then transforming domestic banking and financial services into a multi-pillar and accessible financial system that is connected with the international financial market, is a goal of paramount importance.
How do we connect with the international financial market?
This is clearly reflected in Mongolia's development policy documents. In the long-term development policy of Mongolia "Vision-2050", the goal is to become a country with a multi-pillar economy and to develop a multi-pillared and accessible financial system connected to the international financial market in 2021-2030. Our domestic financial market is too dependent on the banking sector, the competitiveness of banks is weak, interest rates are too high, the types of financial intermediation services are limited, a portfolio of non-performing loans is huge. All these make it difficult to finance a large-scale construction project alone. We have conducted studies as per international financial center and drafted a law. The financial center will have an independent legal regulation. The Ministry of Justice and Internal Affairs, Ministry of Finance, Ministry of Economy and Development, Bank of Mongolia, Financial Regulatory Commission and other stakeholders of various sectors have formed a working group, which is currently in the process of preparing a detailed draft law. The law is being drafted so as to specifically regulate by common law business relations of securities work and services, trading, finance, insurance, and investment in the financial center, and other legal relations, such as criminal and administrative, will be regulated by the legislation of Mongolia. With the approval of this law and the establishment of the international financial center, opportunities and avenues for advancing economic development will open to meet the investment and financing needs of large projects.
Can we understand that the construction will be done by foreign investment?
Construction work will be carried out grounded on the public private partnership. In other words, the largest public private partnership project construction will commence in the Khushig Valley. There are many foreign and domestic investors to invest. What they request is to focus on the provision of a favorable and clear legal environment dominated by international agreements and rules, and a possibility to conduct stable activities.
So, will it become possible to attract investors by preparing a new legal environment?
The JICA International Cooperation Organization of the Japanese Government will implement the technical assistance project to improve the legal framework and investment required for the construction in the Khushig Valley. Since free zones are regulated by a separate law and developed according to international standards, it is necessary to change the methods and forms of management and development based on international experience. It was selected as an optimal option to put it in the form of a corporation based on public private partnership and make any decision together with investors and entrepreneurs.
How do we ensure the participation of public and private sectors’ partnership?
Investors will get more confidence to cooperate, provided the participation of the state is reduced and the participation of the private sector is increased. On the other hand, we envisage the reduction of administrative restrictions and bureaucracy. In case efforts of international researchers improve corporate governance, conditions for attracting private investments will be created. In order to attract and retain skilled managers, it is recommended that salaries and incentives should be provided based on market principles. In general, a responsible and skilled management team will bring high value for money and save money in the long run. It is also necessary to create an optimal financial mechanism for the development of the free zone. Land trading, leasing and allocation will be based on business development principles and development will be done according to a strict schedule. Otherwise, there is a risk that the development will not take place, but turn into a land deal. We will simplify the process of doing business. Current processes are too cumbersome and complicated. It is necessary to simplify business processes as much as possible and reduce stages. It is most important to create a favorable climate for investors. It will require long-term, consistent measures and activities to attract their interest. Investors should not be victimized by unfriendly business policies and regulations.
Thank you for taking your time. I wish you success in your future endeavors.
Thank you. Good luck to you and your team. I am confident that the time will come soon to brighten up the economy of Mongolia with the successful implementation of the Khushig Valley Development Project and the creation of Shine Zuunmod City on a Free Economic Zone.

 
 
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How Mongolia’s Nomadic Culture Is Navigating Modernization www.thediplomat.com

Mongolia’s nomadic culture has deep historical roots. Even those who are not familiar with modern Mongolia will recognize the name Chinggis Khaan (also spelled Genghis Khan) and the Mongol Empire. Today, however, as Mongolia strives to modernize, its nomadic history and activities require international protection so that the younger generation continues to understand their own roots.
In recognition of the 20th anniversary of the 2003 UNESCO Convention on the Safeguarding of the Intangible Cultural Heritage, Mongolia organized the World Festival of Nomadic Culture in the Taij Khairkhan Valley last month. The festival attracted over 1,100 modern nomads, local artists, and craftsmen from 21 provinces of Mongolia. International representatives from China, Russia, South Korea, Turkey, Kazakhstan, Kyrgyzstan, and Hungary made the festival more vibrant and international.
Moreover, during the multi-day festival, UNESCO, the Institute for Central Asian Studies, the International Training Center for Intangible Cultural Heritage for the Asia-Pacific, and other organizations joined a consultative meeting for the adoption of the “Nomadic Living Heritage Safeguarding Declaration.”
Since the 1990s, Mongolia’s modernization process has posed a challenge to traditional nomadic lifestyles. As the younger generation continues to seek urban and technology-dependent lifestyles, nomadic aspirations were left to the very few – mostly of interest to historians, anthropologists, and archaeologists.
At the same time, Mongolia has established a system to preserve what is nomadic and culturally linked with the Mongol civilization with the help of UNESCO.
Since 2003, Mongolia has registered cultural artifacts and activities that are closely tied to the country’s nomadic history. Morin khuur, a horse-headed fiddle; biyelgee, a folk dance; and historic epic stories known as tuuli have all been registered on UNESCO’s List of Intangible Cultural Heritage.
Celebrations of nomadic culture play a crucial role in Mongolia’s effort to develop and modernize while preserving its history intact. Moreover, there an economic incentives to preserving Mongolian traditional culture. Alicia Campi, a leading Mongolian studies scholar, said that Mongols “have promoted the marketing value of these traditions to domestic and foreign audiences.”
UNESCO programs not only help Mongolia preserve cultural traditions that are closely linked to Mongol identity, but they also serve immediate protection for the environment. Given the close connection between nomadic culture and the environment, conservation is a particularly crucial step in preserving Mongolian traditions.
Government-protected mountains, ovoos, and lakes such as Burkhan Khaldun, Altan Ovoo, Orkhon Valley, and Uvs Lake Basin are protected as intangible heritage sites, a status that also grants them environmental protection. As Mongolia’s economy is heavily dependent on mining activities, the protection of these culturally and historically significant sites is a strategic move on the part of policymakers. Such preservation also marks an important milestone for Mongolia’s environmentalists, whose largest concerns directly connect to bad mining practices.
But there is much more to be done. According to the International Union of Conservation for Nature, “A total of 852 rivers, 1181 lakes and 2277 springs [in Mongolia] have gone dry because of irresponsible use of the land and natural resources. These impacts are likely to be further exacerbated by proposed new water transfer projects that are being built to supply water to mining operations.”
As Mongolia becomes more and more modernized and internationally recognized, cross-cultural activities and trends will branch out from the country’s nomadic roots. But as Mongolia continues to build a sense of national identity on its nomadic history, annual festivities and cultural activities that incorporate nomadic elements are deemed necessary – whether it’s for a domestic or foreign audience.
Hence, events like the World Festival of Nomadic Culture showcase Mongolia’s centuries-old nomadic culture to a very modernized audience. The exhibits of traditional arts and crafts, the gathering of local artists, and the practice of activities listed in the Intangible Cultural Heritage are both culturally and economically relevant.
In contrast to the many countries in the world with a historical memory based on settled civilization, nomadic traditions are often lost. Cultural elements that have shaped the history of many once-nomadic countries have been forgotten. From a cultural perspective, this explains the significance of Mongolia’s annual holidays and festivals such as Naadam, Tsagaan Sar, and the World Festival of Nomadic Culture.
This summer, Mongolia saw an increasing flow of tourists, especially during the summer Naadam festival in July, followed by the 100th anniversary of individual provinces. The current administration’s strategy, to combine Mongolia’s nomadic history with the tourism sector is both culturally and economically linked. In the next two years, Mongolia hopes to attract up to 1 million tourists per year.
GUEST AUTHOR
Bolor Lkhaajav
Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.
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ADB to Support Construction of Road Network in Western Mongolia www.adb.org

The Asian Development Bank (ADB) has approved a $150 million loan to improve the efficiency and safety of road transport in Mongolia.
The Regional Road Development and Maintenance Project (Phase 3) will improve state road network sections between aimag (province) capitals in Western Mongolia focusing on Altai (Gobi-Altai) to Uliastai (Zavkhan) and Khovd (Khovd) to Ulaangom (Uvs) to enhance local and regional connectivity.
“The Western region particularly suffers from slow growth because of its remoteness from the country’s political and economic centers, and unpaved state roads connecting aimag capitals,” said ADB Senior Transport Specialist Nicolas Dei Castelli. “Aside from improving road conditions, the project will strengthen sustainable and climate-resilient road maintenance practices, and road safety.”
Land transport and development of a road network are challenging in Mongolia because of long distances and severe weather. Poor road conditions, especially in the rural areas, restrict access to markets, education, and services which worsens poverty and inequality. In addition, out of Mongolia’s 111,943-kilometer (km) road network, only 10,242 km are paved. The road network is vulnerable to extreme weather events such as flooding and landslides, which make roads and bridges impassable for long periods.
The project will support Mongolia in its effort to promote inclusive economic growth by providing all-weather road access, reducing transport costs, and increasing access to services and economic opportunities for residents and businesses in the Western region. It also aims to strengthen road safety, maintenance, and climate resilience through upgrading sections of the state road network and improving road asset management and road safety.
The project’s total cost is $158 million, with $8 million in counterpart financing from the government. It is expected to be completed in 2029.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
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India, Mongolia review bilateral ties www.newsonair.gov.in

Secretary (East) in Ministry of External Affairs Saurabh Kumar, who is on a visit to Mongolia, had productive discussion with Mongolian Minister of Education and Science L. Enkh-Amgalan in Ulaanbaatar yesterday.
They discussed bilateral projects and cooperation in areas of education, IT, skilling and capacity building. They also witnessed the signing of contract for the construction of India-Mongolia Friendship Secondary School.
Mr Kumar also met State Secretary in Ministry of Foreign Affairs of Mongolia N. Ankhbayar. They reviewed bilateral relations, took stock of Indian projects, and exchanged views to further strengthen India-Mongolia Strategic Partnership.
Discussions covered cooperation in areas including development partnership, education, IT, hydrocarbons, renewable energy, security and defence, connectivity, minerals and capacity building.
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What You Should Know Before Investing in Mongolia www.mongoliaweekly.org

Russia's aggression and China's turbulence cast shadows over Mongolia, scaring away investors wary of geopolitical risk. But behind the uncertainty lies massive opportunity in minerals, tourism, and beyond. The question is, can Mongolia implement the reforms needed to capitalize on its potential while navigating a complex region?
18 months into Russia’s invasion of Ukraine and the war shows no signs of abating. While the Ukrainian Armed Forces conduct a counteroffensive against Russian defensive lines, Moscow remains embroiled in internal conflict as Putin seeks to reassert his strength following an armed mutiny in June.
Meanwhile, all is not well in China. Numerous headlines (including here in Mongolia Weekly) speak of an economic downturn and structural malaise. A real estate market crisis, high youth unemployment, high debt levels in local government, and demographic challenges were recently summarised by US President Joe Biden as a ‘ticking time bomb’. In the eyes of China watchers, these challenges have been mounting for a number of years and are now beginning to manifest openly.
When faced with these sorts of challenges, autocrats can tend towards diversionary foreign policy – they engage in external conflicts to distract their populations from internal problems. As Russia weakens, Putin has become more belligerent; as China weakens, Xi Jinping may take the same approach.
This bears great risks for Mongolia. A small nation between two unstable powers is in a precarious position. In the short term, the country’s newly-elevated geopolitical risk profile is lowering foreign direct investment. In the long term, this may make Mongolia poorer as it walks a geopolitical tightrope.
Risk aversion
After Russia invaded Ukraine in 2022, a number of foreign companies (though notably not all) began to divest themselves of their Russian assets. One of the most famous was McDonalds, which had entered Russia to great fanfare in 1990 and made an equally poignant exit in May 2022.
The financial consequences were significant. The Financial Times estimated a loss of 100 billion euros across 600 European multinationals; Renault, as an example, lost 2.2 billion euros. But energy firms were the most affected. BP was estimated to lose 22 billion euros on exiting Russia. Similarly, Shell lost $4.2 billion in assets, including $1.6 billion on its stake in the Sakhalin-2 project after it was nationalised by the Russian government, though it may still receive a payout following Moscow’s sale of the asset.
Geopolitical risk is clearly a major consideration and potentially the source of great losses, even for some of the world’s largest companies. And for foreign investors, Mongolia’s geopolitical risk profile has undoubtedly increased following the Russian invasion of Ukraine.
One business executive told Mongolia Weekly that instability in Russia and China made Mongolia’s position ‘far worse’ for attracting capital: “10 years ago Shell might have entered Mongolia – now there’s no chance. Would Rio Tinto open Oyu Tolgoi if it was discovered now? I think that’s a 50/50.”
These risks are only compounded by the long-standing difficulty of doing business in Mongolia, from an anti-investor tax environment, opaque approval processes and investment laws to coal-smuggling.
Consequently, the Mongolian government faces an up-hill battle to attract foreign capital. Whilst Ulaanbaatar can’t alter the trajectories of Moscow or Beijing, it can (with enough political willpower) alter its own trajectory, which means engaging in meaningful reforms to improve the ease of doing business.
Opportunities investing in Mongolia
Whilst its neighbours undoubtedly present Mongolia with significant challenges, there is also an opportunity to build on the Third Neighbour policy and leverage Mongolia’s unique strategic circumstances.
Mongolian Prime Minister Oyun-Erdene Luvsannamsrai’s recent visit to the United States is a good example of this. A joint statement released after meeting US Vice President Kamala Harris promised greater economic and security cooperation, as well as development assistance. An economic roadmap heralds cooperation across a range of different sectors, including digital literacy, aviation and more, which could diversify Mongolia’s economy (particularly through inbound tourism). Critical minerals have been a key area of focus in recent MOUs between Mongolia and a diverse group of third neighbours, ranging from the US, Korea and European countries.
Security cooperation is also increasingly critical, and is a vital communication avenue for Mongolia into Washington and beyond.
Yet the agreements signed in the US and with others will still require Mongolia to engage in the kind of meaningful reforms necessary to off-set its geopolitical risk, including transparency in approval processes and investment laws. To truly navigate the challenges posed by its neighbours, the country will have to demonstrate that it can strike a different path and learn from the leading mining jurisdictions.
What are top 20 mining jurisdictions in the world?
According to Fraser’s Investment Attractiveness Index:
Nevada (USA)
Western Australia (Australia)
Saskatchewan (Canada)
Newfoundland & Labrador (Canada)
Colorado (USA)
Northern Territory (Australia)
Arizona (USA)
Quebec (Canada)
South Australia (Australia)
Botswana
Alaska (USA)
Ontario (Canada)
Queensland (Australia)
Manitoba (Canada)
British Columbia (Canada)
Morocco
Utah (USA)
Montana (USA)
San Juan (Argentina)
Yukon (Canada)
While Mongolia has a relatively low corporate tax rate of 25%, its mining royalties and value-added tax policies result in a high overall effective tax rate (ETR) for mining projects. Specifically, the ETR reaches approximately 60% for copper and 47% for gold, positioning Mongolia among the highest tax regimes globally for mining. An independent report by Richard Schodde, funded by the Australian government, underlines the importance of an optimal tax structure.
A 100% tax rate stifles mine development, whereas a 0% rate leads to prolific mining but negligible government revenue. Mongolia must find the right balance to attract mining investment without forfeiting fiscal income.
By Ewen Levick | Melbourne
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President Khurelsukh to Participate in G77 Summit in Havana www.montsame.mn

At the invitation of the President of the Republic of Cuba Miguel Mario Díaz-Canel y Bermúdez, the President of Mongolia Khurelsukh Ukhnaa will take part in the Summit on Science, Technology, and Innovation of the Group of 77 (G77) in Havana, Cuba on August 15-16, 2023.
At the Summit President Khurelsukh will express Mongolia's position on science, technology, and innovation and introduce national policies and actions. Moreover, the President of Mongolia is scheduled to meet Cuban President Miguel Díaz-Canel to exchange views on the relations and cooperation between the two countries.
Cuba is the Chair of the G77 for 2023. Mongolia and the Republic of Cuba established diplomatic relations in 1960 and have been developing friendly relations and cooperation.
 
 
 
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Foreign Minister Battsetseg Extends Congratulations on DPRK's 75th Founding Anniversary www.montsame.mn

On September 8, 2023, Foreign Minister of Mongolia Battsetseg Batmunkh attended a celebratory event hosted by the Embassy of the Democratic People's Republic of Korea in Mongolia, commemorating the 75th founding anniversary of the Democratic People's Republic of Korea. During the Event, the Foreign Minister extended her congratulations and best wishes.
Foreign Minister Battsetseg emphasized that this year marks the 75th anniversary of the diplomatic relations between Mongolia and the Democratic People's Republic of Korea, as well as the 35th anniversary of the visit of North Korean Leader Kim Il Sung to Mongolia. She also expressed Mongolia's commitment to steadily develop further the traditional friendly relations and cooperation between the two countries.
Member of the State Great Khural and Chairman of the Mongolia-North Korea Friendship Group in the State Great Khural P. Anujin, Foreign Policy Advisor to the President of Mongolia E. Odbayar, Education, Science, and Technology Policy Advisor to the President of Mongolia Ch. Lodoiravsal, political and social figures, diplomats, and representatives of friendship associations and non-governmental organizations were present at the celebratory Event.
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Works being carried out to increase the quality of public transport www.gogo.mn

The first lane of Yarmag road has been separated for public transport. As a result, the average speed of the bus increased from 12-14 km/h to 16-18 km/h and 20-21 km/h during the day. Head of the implementing unit for the project on reducing Ulaanbaatar's traffic congestion Ch.Batzorig gave information about this. He said:
- As part of the work to increase public transport, 7.2 km of the first lane of Naadamchid Avenue /Yarmag road/ was separated for buses. As of the first half of this year, the number of imported vehicles reached 60,000. The number of vehicles in the capital is increasing every year. In this regard, we are working to increase the quality, availability and traffic of public transport. Therefore, no measures will be taken for traveling by private vehicles. We encourage citizens to use public transport instead of private vehicles as much as possible.
The frequency of buses arriving at bus stops is planned to be every 7-10 minutes. In this context, several measured are planned on this avenue. For example, improving camera monitoring and employing transport police officers are being discussed. In addition, the underpass will be operated and the pedestrian crossing will be moved.
-How is the availability of buses increased?
-There were less than 100 buses in service on Naadamchid Avenue, but now there are 130. Moreover, a short circuit route will be added and put into service from today. A short short circuit will be made from Buyant-Ukhaa to 19th khoroolol, and 15-20 buses will be put into service. More than 900 buses that used to be in public transport service have been renovated in stages, and as of today, more than 450 new buses are in service. And 150 new buses will arrive this month and 180 in October. As a result, 100 percent of public transport buses will be renewed in November, and the number of buses will be increased to 1200 in December.
-Several cars have had an accident and hit it since the fences were placed on the Naadamchid Avenue. How are the damages settled?
-As of today, people who drove a vehicle under the influence of alcohol broke fences in three locations. Two of them are beingiry and investigation is being conducted on one act.
-At what stage is the process of issuing electronic certificates for vehicles?
-Issuance of electronic certificates for vehicles of government organizations operating in Ulaanbaatar is ongoing. About private vehicles, electronic certificates will be distributed to citizens at 44 locations after the government approves the temporary regulations. As for the city of Ulaanbaatar, infrastructure works were carried out in 161 locations last year, and more than 442,000 electronic certificates were purchased.
-Roads are being constructed in two locations in order to reduce traffic congestion on Naadamchid Avenue. How is the progress of this work?
-The bridge connecting Naadamchid Avenue with Thermal Power Plant-IV will be put into operation on November 30. It is planned to complete the main embankment and paving of the 2.8 km road, and to open the carriageway. However, the paving of the road south of the "Misheel" center has been completed. About 65 percent of the road that went north to "Erel" company, 750 meters of road work related to the company has been stopped according to the court's decision.
Source: Media and public relations department of the governor’s office of the capital city
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Kangbuk Samsung Hospital to run hospital in Mongolia www.news.mn

Kangbuk Samsung Hospital was selected to run the Mongolian National Diagnostic and Treatment Center Operation and Management Consulting Project organized by the Korea Foundation for International Healthcare, Korea Biomedical Review reports.
Kangbuk Samsung Hospital has conducted the first and second rounds of consulting for the project since September 2020, which led to significant improvements in the overall operating indicators of the National Diagnostic and Treatment Center.
Consequently, the center recorded a 48 percent increase in the number of outpatients, a 34 percent increase in the number of inpatients, a 220 percent increase in the number of PET-CT examinations, a 107 percent increase in the number of health checkups, and a 20 percent increase in the number of clinical pathology diagnostic tests.
The consulting project will be conducted in close cooperation with the Mongolian Ministry of Health and KOFIH for about 20 months from September 2023 to April 2025.
Accordingly, Kangbuk Samsung Hospital will establish a strategy to revitalize the specialized center, support the organization and operation of a specialized nursing team, strengthen the capabilities of nuclear medicine personnel, and improve the medical device maintenance management system.
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Mongolia's Critical Mineral Strategy Eyes Key Supply Chain Role www.mongoliaweekly.org

Mongolia wants to become a global destination for critical minerals. Now it's working on a new law to get there. The global push to reduce carbon emissions in the global economy is creating an unprecedented demand for electric vehicles and the critical minerals required to fuel them.
Mongolia is ideally positioned to prosper in this scenario with its abundance of critical minerals such as rare earth, lithium and copper - essential for energy transition technologies.
Critical minerals and rare earth
The country is contemplating a regulatory framework for its critical mineral sector, with the introduction of Chapter VIII in the new draft mineral law in the upcoming Fall session of the parliament.
This chapter outlines overarching requirements and defines the state's role in fostering the development of the critical mineral sector.
For the first time, the mineral law introduces the term "critical minerals" and mandates the compilation of a government-approved list of such minerals. The potential involvement of lawmakers and the Parliament in the list's approval could add a political dimension to the issue. The Ministry of Mining officials would be tasked with drafting the list.
In a noteworthy shift, the proposed bill reportedly replaces the longstanding term "strategically important deposits" with the new phrase "minerals of strategic importance." This change is poised to have substantial implications for Mongolia's nascent critical mineral regime.
With the Fall session of the parliament commencing on October 1, 2023, the mineral law bill takes center stage on the legislative agenda.
It shares the spotlight with eagerly anticipated bills addressing land usage and the establishment of a national wealth fund, both of which possess the potential to reshape Mongolia's mineral regulatory landscape.
The land bill is anticipated to introduce measures that would liberalize land usage for foreign entities. This proposal, however, remains a sensitive topic, as it touches on concerns of encroachment by neighboring China. A prior attempt to table the bill was met with significant domestic opposition.
Policymakers aim to strike a balance by fostering foreign investment through land liberalization while maintaining Mongolia's sovereignty and safeguarding its interests. All these efforts would be key to Mongolia's critical mineral strategy.
Acquiring rare earth element (REE) licenses used to involve a rigorous process, requiring approval from the National Security Council and the Cabinet due to their classification as radioactive elements.
The new bill may help to streamline the process and improve the regulatory environment for investors.
Mongolian reserves of rare earths
Mongolian reserves of rare earths (source: MongolianEconomy.mn, 2020)
The scarcity of REE deposits, coupled with their concentration in technologically advanced countries, presents a challenge for Mongolia's entry into the global market.
In June 2023, Ulaanbaatar took a significant step by signing an MoU with the United States, setting the stage for American assistance in developing a critical mineral strategy. This move comes as a response to the United States' recognition of its vulnerability to disruptions in critical mineral supply chains.
The MoU aims to strengthen collaboration between the two countries in securing these vital resources. Mongolia's new strategy for critical minerals must also address investor concerns and clearly signal that the country is open for business.
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