Mongolia Weekly: Mongolia opens Erdenet smelter bids, unveils asset registry, reserves surge

November 29, 2025 to December 5, 2025

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

1. Government invites global bids to build Erdenet copper smelter, sets legal framework and January 2026 proposal deadline

Mongolia’s Cabinet has launched an open, competitive tender to select a strategic investor and EPC contractor for a long-planned copper smelter at the Erdenet Industrial and Technology Park, circulating project materials to leading metals producers and setting a proposal deadline of January 15, 2026. The plant is designed to refine 120,000 tonnes of copper annually, with estimated capital requirements of roughly USD 772–800 million (about USD 60 million already invested in infrastructure) and a targeted two-year construction period; projected annual sales are around USD 1.1 billion. Proposals will be evaluated on financial strength, technology and management capacity, and qualifying investors will be presented to Parliament for a stability (investment) agreement.

Officials, including Cabinet Secretariat Chief and Minister S. Byambatsogt, stressed a transparent, non-preferential process and the use of an Investment Agreement framework and Parliamentary review for large investments. The project scope includes multiple outputs (cathode/standard copper, gold/silver bullion, sulfur, crude nickel sulfate), and the government has updated the project charter, appointed a CEO for Copper Processing Complex LLC, and finalized the feasibility study; draft tender and financing terms are due to go to the Cabinet next week.

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

From daily briefs: 2025-12-03, 2025-12-04

2. Government Launches Unified Public-Asset Registry to Expose Spending by 7,000 State and Local Entities

The Cabinet has approved a centralized digital public-asset registry to disclose finances, procurement, asset use and governance for roughly 7,000 state and locally owned entities holding about MNT 134–135 trillion in assets. The platform will publish purchase and sale prices, asset status and disposal, financial statements, procurement contracts, lease arrangements, and board selections and decisions—extending transparency measures already used at Erdenes Tavantolgoi and citing reforms at Erdenet (including AI-driven procurement and exchange-based copper concentrate sales) as precedents.

Officials, led by Cabinet Secretariat chief S. Byambatsogt, say the open electronic system will curb leakages, improve oversight and reduce waste ahead of pending legislation on state‑owned enterprise governance and public property. For international professionals, the move signals a substantive push toward data-driven accountability in Mongolia’s SOE sector, with potential implications for investor due diligence, anti‑corruption monitoring and the design of governance reforms.

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

From daily brief: 2025-12-04

3. Foreign Reserves Hit Record USD 6.01 Billion as Mining Exports Rise and Debt Management Improves

Mongolia’s foreign exchange reserves reached a record USD 6.014 billion as of December 2, 2025, driven by stronger mining exports, improved external financing conditions and active debt management by the government and the Bank of Mongolia. Media reports cite higher hard‑currency inflows through the trade balance and banks, refinancing of international bonds and large external repayments that eased near‑term rollover risk; an upgraded sovereign rating and better market access also supported accumulation.

The larger reserve buffer strengthens macro stability by underpinning the Bank of Mongolia’s price and exchange‑rate objectives and could lower sovereign borrowing costs, giving policymakers more room to manage shocks and support the tugrug. Continued reserve sustainability, however, will depend on ongoing commodity export momentum and prudent debt operations.

Local Coverage: montsame.mn, ikon.mn, itoim.mn, urug.mn, gogo.mn

From daily brief: 2025-12-04

4. Energy Import Dependence Persists as New Capacity Lags and Project Decisions Stall

Mongolia’s electricity demand is growing 6–8% annually, pushing peak load to about 1,600 MW and prompting a >60% rise in imports over five years even as sector debt exceeds MNT 810 billion. Tariff increases have not eliminated peak-hour shortages in Ulaanbaatar and an estimated 6,000–8,000 new peri‑urban households remain off-grid each year. Major projects with completed feasibility studies — notably the Egiin Gol hydropower and Baganuur coal plants — have stalled, while the Energy Ministry lists several planned additions (Tosontsengel 35 MW; Selenge 70 MW; Khushuut 100 MW; a 600 MW Tuv coal plant), upgrades including Ulaanbaatar’s DCS‑V heat plant, distributed heat sources, and expanded solar and wind to target self‑sufficiency by 2029–2030 and later exports.

Veteran engineer B. Tsevveen recommends fast‑tracking small coal plants, easing grid‑connection rules and scaling household solar with storage, including concessional financing repaid in generated electricity, as practical measures to reduce import dependence quickly. The sector is also shifting equipment sourcing from Russia toward China after a fatal incident at DCS‑III raised reliability concerns, underscoring the need to diversify technology suppliers while accelerating smaller, distributed capacity to relieve immediate shortages.

Local Coverage: unuudur.mn

From daily brief: 2025-11-29

5. PM Rejects Bailout for Key Thermal Plant as Grid Nears Load Limits

Mongolian Prime Minister G. Zandanshatar has rejected a state bailout request from state-owned Thermal Power Plant No.4 — which provides about 59% of the central region’s electricity and 55% of Ulaanbaatar’s heat — after the operator reported MNT 78.4 billion in liabilities and asked the budget to cover Development Bank debts. During an inspection the PM ordered cost reductions, governance reforms, tighter internal controls, and raised minimum coal stockpiles from 19 to 30 days with stricter quality checks ahead of winter, saying losses should not be passed to consumers.

Energy Minister B. Choijilsuren warned peak load has reached 1,710 MW and curtailments are likely if demand hits 1,800 MW; the system capacity cited comprises roughly 1,300 MW domestic generation, 160 MW battery storage and 300 MW of imports. Officials attributed the sector shortfall to prolonged underpricing of heat and electricity, signaling further operational and market reforms will be needed to avoid supply disruption this winter.

Local Coverage: eagle.mn, news.mn, ikon.mn, gogo.mn, itoim.mn

From daily brief: 2025-12-03

6. Bill on Strategic Product Supply Moves to Final Review Stage After Parliament Vote

Parliament held the first reading of the government’s bill to bolster supply and delivery of strategically important products, originally submitted on November 25. The Economic Standing Committee had recommended fast-tracking the measure from first reading directly to final passage—supported by 70.6% of committee members present and with no formal amendments proposed—yet a procedural motion to advance the bill failed in plenary after questions from MP A. Ariunzaya.

As a result the bill was returned to the Economic Standing Committee for preparation for a final reading, keeping it on the legislative track but extending the timeline for enactment. The setback increases the likelihood of additional amendments and clarifications before a decisive vote, potentially affecting implementation timelines for supply-chain measures the bill aims to enable.

Local Coverage: montsame.mn

From daily brief: 2025-11-30

7. Cabinet Convenes Extraordinary Session to Review SOE Audit Findings and Fast-Track EAEU Trade Accord

Mongolia’s Cabinet convened an extraordinary session to fast‑track three priority items: submission to Parliament of a bill to ratify a three‑year provisional trade agreement with the Eurasian Economic Union (EAEU), emergency budget measures to curb seasonal influenza, and review of audit findings on select state‑owned enterprises (SOEs) that could trigger governance actions. The Cabinet approved sending the EAEU pact—which covers only trade in goods, excludes investment/services/finance, and provides tariff eliminations or reductions for 367 six‑digit HS‑coded products via four modalities—to Parliament; the deal preserves VAT and excise regimes, applies safeguards through annual quotas (eg, wheat, eggs) with normal tariffs beyond quota, and can be extended by mutual consent.

Government GTAP modelling projects modest macro gains (0.02% GDP uplift) but more substantial sectoral effects: investment +2.57% and a 24.1% increase in exports to the EAEU, with potential export jumps up to 152% for meat, wool/cashmere, textiles and leather—reflecting expectations that non‑mining agriculture and light industry will benefit while Mongolia imports inputs it lacks (minerals, chemicals). The influenza measure would allocate immediate funds for peak respiratory‑season responses, and the SOE audit review flagged possible follow‑on measures (leadership changes, compliance directives, restructuring) depending on identified risks; formal decisions were to be announced shortly.

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

From daily brief: 2025-11-29

8. Anti-Corruption Authority Probes Illegal Transfer of ‘Olon Ovoot’ Mining Licenses, Seizes Suspects After Alleged 2.7B MNT Bribe

Mongolia’s Independent Authority Against Corruption (IAAC) has launched a criminal probe into alleged unlawful reassignment of eight “Olon Ovoot” mineral licenses and related bribery and money‑laundering involving former and current Mineral Resources and Petroleum Authority (MRPA) officials. Investigators say the licenses—previously placed with bank receivers by the Bank of Mongolia to satisfy a 148.5 billion MNT enforcement claim against Olon Ovoot Gold LLC—were reassigned on May 6, 2025 to Olon Ovoot Gold LLC and Zuv Zug LLC. The IAAC alleges a 2.7 billion MNT bribe was paid through intermediaries, three individuals have been designated suspects (one arrested, others detained), and potential charges include bribe‑taking (Criminal Code Art. 22.4) and bribe‑giving (Art. 22.5).

The case signals heightened scrutiny of resource governance and state asset protection in Mongolia, with the alleged 148.5 billion MNT loss underscoring systemic financial and legal risks for investors and state institutions. Ongoing detentions and the IAAC’s involvement suggest further criminal and administrative fallout for MRPA personnel and private actors if the probe substantiates the alleged transactions.

Local Coverage: gogo.mn, isee.mn

From daily brief: 2025-12-05

9. ASEAN Receives Mongolia’s Formal Bid for Sectoral Dialogue Partnership

Mongolia formally requested ASEAN Sectoral Dialogue Partner status on 25 November, when Ambassador D. Enkhtayvan delivered a letter from Foreign Minister B. Battsetseg to ASEAN Secretary‑General Dr. Kao Kim Hourn in Jakarta. The move seeks to upgrade Mongolia’s engagement beyond its current roles as a participant in the ASEAN Regional Forum and as a party to the Treaty of Amity and Cooperation (TAC), signalling Ulaanbaatar’s intent to deepen ties with a bloc it deems central to regional peace, stability and economic development under its multi‑pillar, independent foreign policy.

Secretary‑General Kao said he will present and support the request to ASEAN member states and urged continued Mongolian involvement in ARF activities and the TAC’s 50th‑anniversary events in 2026. If approved, sectoral dialogue partnership would broaden bilateral and multilateral cooperation opportunities between Mongolia and ASEAN members across political, economic and security dimensions.

Local Coverage: montsame.mn

From daily brief: 2025-11-29

10. Ulaanbaatar and Rome Elevate Ties to Strategic Partnership, Sign Transport, Minerals and Tourism Pacts

During a December 1–3 state visit to Rome, Mongolia’s President U. Khurelsukh elevated bilateral relations with Italy to a Strategic Partnership—the second EU member after Germany to reach this level with Ulaanbaatar—and signed more than 10 cooperation documents covering road transport under the TIR convention, education and culture (2025–2028), tourism facilitation, critical minerals, civil protection, media exchanges (MNB–RAI) and subnational links. A Rome business forum of roughly 150 companies produced MoUs targeting leather, cashmere (notably washed and combed exports), food, logistics, energy and SME ties, and advanced proposals for the first direct flights and deeper economic diplomacy ahead of Italy’s Milan‑Cortina 2026 Olympics; President Sergio Mattarella accepted an invitation for a reciprocal state visit in 2026.

On December 4 Khurelsukh made a state visit to the Holy See—the first Mongolian presidential trip there in 14 years—meeting Pope Leo XIV and Cardinal Pietro Parolin to deepen cooperation in culture, education, archival research and shared priorities on peace, climate action, desertification and poverty alleviation. The visits combine ceremonial diplomacy (wreath‑laying at Rome’s Tomb of the Unknown Soldier) with practical aims to ease Mongolian access to EU markets, diversify partnerships across mining, renewables, transport and tourism, and leverage multilateral coordination (including FAO events and the UN International Year of Rangelands and Pastoralists) to address climate and food‑security challenges.

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

From daily briefs: 2025-12-01, 2025-12-02, 2025-12-03, 2025-12-05

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.