Mongolia Weekly: Mongolia advances economic freedom, tightens Oyu Tolgoi oversight, boosts uranium

December 13, 2025 to December 19, 2025

This week's top 10 stories from Mongolia, selected from our daily intelligence briefs.

1. Government Submits Economic Freedom Bill to Parliament to Curb State Intervention and Attract FDI

Mongolia’s Cabinet has submitted an Economic Freedom Bill to Parliament, led by Deputy Prime Minister and Minister of Economy and Development J. Enkhbayar, aiming to codify the right to conduct business, strengthen property protections and limit extra-legal state intervention. The draft prohibits officials from restricting economic freedom without legal basis, unlawfully seizing property, conducting unmandated inspections or spreading defamatory information, and would restore a unified inspection regime, create a PM‑chaired Economic Policy Council for formal government–private consultation, and require reviewing or repealing at least 1,000 regulations. The package includes amendments to the Investment Law and nine related laws to remove sectoral limits on foreign investment and is presented as budget‑neutral; Enkhbayar frames it as necessary to improve investor confidence after Mongolia’s recent 25‑place slide in international business‑environment rankings despite 5.9% growth and 8.2% inflation.

In parallel, the government proposed privatizing or partially listing stakes (10–66%) in 18 state‑owned enterprises and fully divesting eight more, reducing the SOE count by 19 to 82 and targeting firms across aviation, energy, finance and mining (including MIAT, Thermal Power Plant No.4, State Bank, Erdenes Tavan Tolgoi, Erdenet). The combined reforms — regulatory liberalization, clearer rule‑of‑law protections and an SOE privatization roadmap for 2025–2028 — signal a concerted push to attract foreign direct investment and streamline the business environment, though parliamentary approval and implementation details will determine their practical impact.

Local Coverage: gogo.mn, montsame.mn, isee.mn, ikon.mn, itoim.mn, urug.mn, news.mn, unuudur.mn, eagle.mn

From daily briefs: 2025-12-16, 2025-12-17, 2025-12-18, 2025-12-19

2. Parliamentary Task Force to Finalize Oversight Report on Oyu Tolgoi Operations

A parliamentary ad hoc oversight committee on the Oyu Tolgoi mine, chaired by MP O. Batnairamdal and comprising MPs M. Badamsuren, B. Bat‑Erdene, B. Bayarbaatar, E. Bolormaa, S. Zulphar, Sh. Byambasuren, P. Ganzorig, B. Jargalan, D. Purevdavaa and U. Shijir, will meet at 14:00 today to finalize and debate its report, recommendations and conclusions. The task force, formed under Parliament’s 2025 Resolution No. 62, conducted three days of evidentiary hearings from 8–12 December to examine documents and activities aimed at protecting Mongolia’s interests and increasing returns from the Oyu Tolgoi copper‑gold deposit.

The committee’s findings could influence future parliamentary oversight, contractual interpretation and benefit‑sharing arrangements for a project that is central to Mongolia’s revenues and foreign investment. With no officials quoted in the source, the report itself will be the first substantive public indicator of parliamentary priorities and potential policy or legal changes affecting Oyu Tolgoi.

Local Coverage: isee.mn

From daily brief: 2025-12-18

3. Erdenes Oyu Tolgoi CEO Released After 48-Hour Detention; Travel Ban Imposed in Misuse-of-Office Probe

Erdenes Oyu Tolgoi CEO E. Gankhuu was released after a 48‑hour urgent detention during parliamentary oversight hearings, but a district summary court has imposed a travel ban as prosecutors continue an investigation into alleged misuse of office, local media report. Prosecutors allege Erdenes Oyu Tolgoi signed an 8.247 billion MNT purchase agreement with BMC M LLC on Aug. 15, 2024 and advanced 70% (≈5.773 billion MNT) on Sept. 25 without taking possession; the company subsequently leased 374.65 sq m in the Blue Sky Tower where an audit found rent exceeded the state benchmark, adding about 170.8 million MNT in extra costs.

The measure effectively restricts Gankhuu’s international movement while investigators examine whether the upfront payment and leasing arrangement constituted an abuse of position. The case, which combines parliamentary scrutiny, a high‑profile state asset transaction and quantified alleged loss, could have governance and reputational implications for Mongolia’s state mining sector depending on investigators’ findings.

Local Coverage: isee.mn

From daily brief: 2025-12-17

4. Badrakh Energy’s Ulaanbadrakh Uranium Project Advances Toward 2028 Production with $1.7B Investment

State-backed Badrakh Energy announced that the Züövch-Ovoo uranium project in Ulaanbadrakh, Dornogovi — 66% owned by France’s Orano and 34% by the Mongolian government — is advancing toward commercial production targeted for October 2028 following a planned construction start in 2026. The project, formalized by an investment agreement on 17 January 2025, estimates total capital expenditure of $1.7 billion to develop an in-situ recovery operation modeled on Kazakhstan’s KATCO, with nameplate production of 2,500 tonnes per year of yellowcake over at least 33 years and projected national benefits of $5.2 billion.

Preparatory work includes road and power infrastructure, completion of environmental and social impact assessments, and a workforce training program for about 1,600 workers via a new academy. Local health and livestock studies reported no uranium-related abnormalities, and community commitments cover education, healthcare and a five‑million‑tree pledge. For international stakeholders, the project represents Mongolia’s second major investment pact after Oyu Tolgoi and the first large-scale European-linked mining venture, raising strategic implications for foreign capital, regional uranium supply, and local socio-environmental oversight.

Local Coverage: montsame.mn

From daily brief: 2025-12-16

5. Parliament Ratifies Interim Trade Deal with Eurasian Economic Union, Opening Tariff Cuts on 367 Goods

Parliament ratified a three‑year interim trade agreement with the Eurasian Economic Union (EAEU) by an 84% vote, approving tariff reductions or exemptions on 367 product lines and streamlined customs procedures (clearance within four hours, self‑certification of origin for shipments ≤€5,000, risk‑based inspections). The pact — limited to goods and excluding investment, services, banking and payments — is automatically renewable unless parties agree otherwise and protects certain sensitive items via quotas or exclusions.

Officials cite GTAP modelling estimating modest macro gains once implemented: GDP +0.02%, investment +2.57% and exports to the EAEU +24.1%, with strongest upside for meat, hides, wool/cashmere and textiles. Government and parliamentary leaders (Speaker N. Uchral) argue the deal will help diversify trade away from China (which currently absorbs >90% of Mongolia’s exports), boost non‑mining exports, employment and economic activity, and may lower consumer prices and transaction costs; Mongolia recorded $27.4bn in trade turnover and a $4.2bn surplus in 2024.

Local Coverage: urug.mn, eagle.mn, ikon.mn, news.mn, montsame.mn, isee.mn, itoim.mn

From daily briefs: 2025-12-13, 2025-12-14, 2025-12-16

6. Parliament Debates Temporary Committee to Probe Harbin Rail Link Deal Alleged to Risk $10 Billion Loss

Parliament moved forward with debate on forming a temporary oversight committee to probe the February 17 Harbin agreement on the Gashuunsukhait–Gantsmod cross‑border railway, after a competing proposal by MP L. Oyun‑Erdene was rejected and procedural caps were cleared. MPs J. Bayarmaa and D. Ganbat secured the required minimum of 32 signatures to launch the inquiry; the Economic Standing Committee on December 9 endorsed sending Bayarmaa’s resolution to the plenary, finding by a 64.7% majority that the proposed inquiry complies with the Constitution.

The proposed panel will examine allegations that the Harbin deal could expose Mongolia to up to a $10 billion loss—an issue with major implications for cross‑border logistics and mining exports. During the plenary today MP D. Regdel questioned the sponsors and Cabinet member B. Delgersaihan responded before the session recessed, signaling continued political scrutiny and potential policy or contractual ramifications for Mongolia’s export infrastructure.

Local Coverage: isee.mn

From daily brief: 2025-12-13

7. Russian Arbitration Orders Enforcement Against 66% of Oyu Tolgoi Shares in $1.28 Billion Dispute

A Russian arbitration court in Kaliningrad on December 11 ordered enforcement against 66% of Oyu Tolgoi LLC’s shares to secure a US$1.28 billion claim by PJSC OK RUSAL in a profit‑sharing dispute with the Rio Tinto Group; the ruling can be appealed to the Thirteenth Arbitration Court of Appeal within one month. Although the measure targets Rio Tinto, naming Oyu Tolgoi—a Mongolian entity operated by Rio Tinto—as a third party raises immediate legal and operational risks for Mongolia’s flagship copper‑gold project and its regulators, and could complicate financing, ownership negotiations and cross‑border enforcement dynamics.

The development has intensified domestic political scrutiny: MPs B. Pürevdorj and E. Bolormaa criticized parliamentary hearings on Oyu Tolgoi, warning that witness testimony may be used in prospective London arbitration and accusing Rio Tinto of fomenting political division—charges flatly denied by Oyu Tolgoi CEO S. Munkhsukh. Analysts cited in local reports urged Rio Tinto and Oyu Tolgoi to clarify the arbitration process and explain why Oyu Tolgoi’s share capital is subject to enforcement under Russian law, underscoring potential reputational and legal exposure for all parties.

Local Coverage: isee.mn, news.mn, gogo.mn

From daily briefs: 2025-12-13, 2025-12-17

8. Tax Arrears Swell, Account Freezes Intensify as Business Leaders Urge Overhaul of VAT and Royalties

Mongolia’s tax arrears have swollen to MNT 6.5 trillion, with about 321,000 individuals and firms reportedly in debt and more than 21,800 bank accounts frozen, business leaders warn, creating acute cash‑flow pressure and risking closures. Entrepreneurs report abrupt account freezes, inclusion of volatile VAT and Mineral Royalty (AMNAT) accruals against income not yet received, retroactive local tax assessments and demands to prepay 50% of liabilities before unfreezing—measures that chambers say produce “paper” debts as commodity prices swing and deter formal hiring through higher social insurance burdens.

B. Lkhagvajav, president of the Mongolian National Chamber of Commerce and Industry, urged urgent passage of stalled tax and social insurance reforms and consideration of a tax amnesty after successive economic shocks, arguing current practices take VAT and AMNAT directly from projected revenue and effectively strangle businesses. CEOs such as E. Dulgunn of Spark Agency decry unexplained sweeps of funds as tantamount to theft, underscoring calls for policy changes to protect liquidity and restore confidence in the tax administration.

Local Coverage: itoim.mn, itoim.mn

From daily brief: 2025-12-19

9. Copper Concentrate Exports Jump 72.5% to $5.1 Billion as Volumes and Prices Rise

In the first 11 months of 2025 Mongolia’s copper concentrate exports surged to 2.0 million tonnes worth $5.1 billion, a 34.8% rise in volume and a 72.5% increase in value year‑on‑year, the Ministry of Mining and Heavy Industry reported. The jump was driven by higher global copper prices — the average export price per tonne rose by $509 versus a year earlier — and increased shipments, making copper a key driver of export performance even as other commodity revenues weakened.

Overall exports declined 5.9% to $13.7 billion through November, weighed down by a 38.1% fall in coal receipts (down $3.1 billion) and drops in washed cashmere and crude oil; total trade turnover stood at $24.0 billion with a $3.5 billion surplus. Mining products comprised 92.5% of exports, highlighting the economy’s heavy dependence on commodity cycles and the growing influence of copper on Mongolia’s external earnings.

Local Coverage: montsame.mn, ikon.mn

From daily brief: 2025-12-18

10. Government Submits 2026–2028 Plan to Float and Restructure State-Owned Firms

Mongolia’s Cabinet has submitted to Parliament a 2026–2028 privatization and restructuring roadmap that would list stakes in 18 state-owned enterprises (SOEs), fully divest eight firms, and merge or reorganize seven others, reducing the number of 100% state-owned entities by 18.8% to 82. The draft proposes public offerings of 10–66% stakes in strategic assets including Erdenes Tavan Tolgoi, Erdenet, MIAT, the Mongolian Stock Exchange, National Reinsurance, coal miners Shivee Ovoo and Baganuur, and several power plants; it also targets liquidation of underperformers such as Auto Impex. Officials point to 2024 audited figures showing SOE return on assets of 9.63% and consolidated net profit of MNT 5.7 trillion—but with Erdenes Tavan Tolgoi and Erdenet accounting for 56% of revenue and 89% of profits—underscoring concentration risks.

The plan aims to attract domestic and foreign capital, strengthen corporate governance, and limit state competition with the private sector by enabling broader public share offerings and legal changes to prevent creation of new dominant shareholders. Backed by parallel reforms (a forthcoming Business Freedom Law and a 2025–2028 economic agenda), the initiative is positioned as a market-oriented push to deepen capital markets, improve transparency of large SOEs and channel financing to infrastructure and private enterprise; parliamentary approval is required before implementation.

Local Coverage: montsame.mn, gogo.mn, eagle.mn, ikon.mn, itoim.mn, isee.mn, urug.mn, news.mn, unuudur.mn

From daily briefs: 2025-12-16, 2025-12-17, 2025-12-18, 2025-12-19

About This Weekly Digest

The stories above represent the most significant developments from Mongolia this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Mongolia's leading news sources to provide comprehensive situational awareness for international decision-makers.