Mongolia’s Administrative Appellate Court has upheld the government’s decision to terminate a major industrial concession with QSC LLC, Mongolian investor company, ruling that the action was taken “within its lawful authority to protect national security, defense and public interest.”
The case concerns a 2022 government resolution cancelling QSC’s concession agreement to develop the Darkhan Metallurgical Complex, a project intended to create Mongolia’s first integrated steelmaking facility complex.
The cancellation came only four months after the government had approved the project’s revised feasibility study, which was updated to adapt to limited power supply conditions. QSC described the move as abrupt and contradictory, arguing that it violated contractual and investment protection principles.
The company says it had already invested substantial funds in mine development, rail and power infrastructure. However, the court found that “the investor’s legal rights and interests were not infringed,” even though the project and related assets have effectively been seized by the state.
QSC said the ruling “raises serious concerns about the application of the public interest doctrine” and plans to appeal once the written judgment is issued.
The decision has renewed debate over the government’s growing use of “public interest” as a legal justification for taking control of private industrial assets — a trend that investors warn could chill confidence in Mongolia’s business environment.
https://news.mn/r/2831326/
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https://eguur.mn/635010/
https://isee.mn/n/84153

Published Date:2025-10-31