Mongolia Weekly: Mongolia reshapes Oyu Tolgoi leadership, advances $700m smelter, backs transport

January 24, 2026 to January 30, 2026

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

1. Government Orders Overhaul of Oyu Tolgoi Board Representation and Erdenes Oyu Tolgoi Leadership

Mongolia’s Prime Minister G. Zandanshatar has ordered a reset of government representation at the Oyu Tolgoi (OT) copper‑gold project, directing performance reviews, dismissals and competitive recruitment of new government‑nominated directors on Oyu Tolgoi LLC’s board (current Mongolian representatives: Chair N. Tserenbat; members E. Mendtuvshin and D. Tsolmon). The Cabinet also tasked state owner Erdenes Mongol LLC to sack and competitively reappoint the CEO of Erdenes Oyu Tolgoi LLC; CEO E. Gankhuu, appointed in 2024, faces potential removal after a December arrest by anti‑corruption authorities. The moves follow a parliamentary resolution to strengthen protection of national interests and are intended to strengthen Mongolia’s negotiating position with Rio Tinto.

Government officials say talks with Rio Tinto will resume after the Cabinet updates its mandate to reflect the State Great Khural’s formalized resolution. Industry Minister G. Damdinyam reported that a protocol from talks launched in late October and paused on November 20 secured commitments to reduce management fees, lower loan interest costs and remove a seven‑year “lock” that had impeded progress; negotiations are expected to continue soon as governance and mandate changes are implemented.

Local Coverage: isee.mn, itoim.mn, ikon.mn, gogo.mn

From daily brief: 2026-01-27

2. Government Shortlists Four Bidders for $700m Copper Smelter; Final Selection Due in Q1 2026

Mongolia has shortlisted four bidders to build a $700 million copper concentrate smelter and refinery anchored on the Erdenet mine, with a final investor-contractor decision due in Q1 2026. The contenders are China’s NFC; Jiangxi Copper; a Chinese consortium (Liantou New Energy Technology, China ENFI Engineering, Shanxi Northern Copper Industry); and Switzerland’s Glencore International AG. Authorities expect about two years of construction and annual refined output of roughly 120,000 tonnes, aiming to shift value capture from concentrate exports to higher-value refined copper.

The state formed a task force in late 2025 and solicited interest from 55 companies across 20+ countries; 13 firms from seven countries responded before four advanced to the shortlist. Officials say the selection will be completed within the quarter and emphasize an open, competitive process to secure “the most experienced, high-technology strategic partner,” signaling Mongolia’s push to retain more downstream value and strengthen its industrial footprint in copper amid rising global demand.

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

From daily brief: 2026-01-29

3. Foreign Workforce Triples Over Three Years as Mining Leads Demand

Mongolia hosted 9,400 foreign employees from 102 countries under labor contracts in 2025, a 17.3% increase from 2024 and roughly three times the 2022 level, the National Statistics Office reports. The foreign workforce is predominantly male (83.7%) and concentrated in mining, which employs just over 30% of these workers; Chinese nationals make up 60% and Filipinos 6%. Skills composition is tilted toward higher-skilled roles, with about 36% classified as specialists and 22% as technicians or associate professionals.

The figures signal mounting reliance on foreign technical expertise to staff capital-intensive mining and infrastructure projects as they expand, and a persistent gap in domestic capacity for specialist and technical roles. For international professionals and investors, the trend implies continued demand for outsourcing skilled labor, potential pressure on labor-market and immigration policies, and opportunities for firms supplying technical talent or training services.

Local Coverage: unuudur.mn

From daily brief: 2026-01-27

4. Government Backs High-Impact Transport Projects as Capacity Limits Bite

Mongolia’s deputy prime minister and economy minister J. Enkhbayar convened Transport Ministry leaders to prioritise investment in rail, road and aviation as current networks near capacity, saying infrastructure scaling and investor protections must outpace politically driven projects (isee.mn). Rail freight reached 48 million tonnes in 2025 with a 55 million target for 2026, and passenger rail aims for 2 million travellers in 2026; the Gantsmod–Gashuunsukhait cross‑border link is 9.5% complete and due in 2027, projected to handle up to 30 million tonnes of exports annually, while the Bagakhangai–Khushig Valley spur is 90% finished.

Officials identified urgent needs on the Zamyn‑Uud–Choir dedicated highway and regional roads in Ömnögovi and Dundgovi, and flagged Chinggis Khaan International Airport—designed for 1.6 million passengers but carrying 2.4 million in 2025—for expansion. The emphasis on high‑impact public–private partnerships and protecting investor rights signals a shift toward commercially driven project selection to sustain export growth and relieve transport bottlenecks.

Local Coverage: isee.mn

From daily brief: 2026-01-24

5. Mining Week Launches with Push to Amend Minerals Law, Rebalance Royalties, and Accelerate Downstream Projects

Mongolia opened “Mining Week” announcing a strategic shift from raw extraction toward domestic processing and faster investment approvals, with Industry and Minerals Minister G. Damdinnyaa saying amendments to the Minerals Law will be submitted to Parliament in March. Proposed changes would prioritize refining copper, steel and aluminum, realign royalties to reward value-added output, tighten exploration licensing to curb hoarding, and codify mine closure and rehabilitation obligations. Authorities also plan to allocate 20% of the Minerals Royalty to host soums and 10% to aimags to boost local benefits. Planned downstream projects highlighted include copper processing, a 1 mtpa steel plant in Darkhan, coal upgrading at Baganuur, and gold refining.

Officials tied legal clarity to investor confidence, noting that resolving disputes with major partners — notably Rio Tinto — would send a positive signal to investors, a point echoed by AmCham Mongolia’s O. Adyaa. Separately, Minister Damdinnam reported an understanding with PetroChina Daqing Tamsag to increase exploration and production at the Tamsag fields to supply the Dornogovi refinery, after fiscal disputes this year including a 436 billion MNT tax assessment and a 66.5 billion MNT National Audit Office payment; a joint working group and policy steps for long-term, competitively priced fuel imports from China were agreed.

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

From daily brief: 2026-01-27

6. PM Plans Strategy to Cut Loan Interest for Domestic Manufacturers, Pairs With Tax Relief and Procurement Push

Mongolian Prime Minister G. Zandanshatar announced the government is drafting a strategy to lower loan interest for domestic manufacturers and will submit the plan to Parliament, complementing a broader industrial support package that includes tax relief and enhanced state procurement. The proposed Tax Package aims to reduce taxpayers’ burden by MNT 1.6 trillion, raise the SME turnover threshold from MNT 1.5 billion to MNT 2.5 billion, and expand VAT refunds; officials also directed agencies to tighten quality and standards compliance and assist firms in adopting new standards.

The government highlighted a 2.8‑fold increase in state tenders awarded to registered entities over five years, reaching MNT 12.6 trillion, and a rise in domestic tender winners from 3,580 in 2019 to 5,137 in 2025. Exhibitors have requested expanding the list of 154 certified domestic goods eligible for procurement, signaling a push to translate fiscal and credit measures into greater market access for “Made in Mongolia” producers.

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

From daily brief: 2026-01-27

7. Cabinet Weighs Copper Smelter Tender Progress, Welfare Rule Changes, and Central Bank Securities Cap

The Cabinet met at 08:00 to review a wide-ranging agenda with potential macroeconomic and sectoral implications. Ministers received an update on the copper smelter tender process—central to Mongolia’s value-added mining and export diversification strategy—and approved coordinates and licensing for common-use mineral exploration and extraction areas, steps that could speed construction and boost supply of infrastructure materials. Cabinet members will also consider amendments to social welfare pension and benefit procedures and durations, which may affect household incomes and consumption patterns.

On financial-market policy, the government will set the annual ceiling for purchases of government and Bank of Mongolia securities, a policy lever with direct implications for liquidity and interest-rate management. Other items included a new “Security—Shared Participation” program, import quotas and categories for livestock and breeding materials aimed at improving herd genetics, and the annual designation of national champion herders, dairy workers, farmers and collectives. Decisions from this meeting could shift capital-market dynamics, accelerate mining procurement timelines, and influence agribusiness planning.

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

From daily brief: 2026-01-29

8. U.S. Renewable Firms Explore Solar Manufacturing and Storage Projects After Meeting with Deputy PM Enkhbayar

Mongolia’s Deputy Prime Minister and Minister of Economy and Development, J. Enkhbayar, met with representatives of U.S. renewable energy firms, including solar panel manufacturers, to present recent legal reforms and investor-support policies aimed at accelerating renewables development. He highlighted Mongolia’s large wind and solar potential, plans for regional power cooperation, and the government’s intention to strengthen public–private partnerships and maintain predictable long-term policies to build investor confidence.

The U.S. delegation proposed projects spanning utility-scale solar plants, local photovoltaic manufacturing, advanced technology deployment, and integrated energy storage. Enkhbayar signalled openness to U.S. participation in upcoming tenders and projects, stressing a transparent, stable business environment for foreign investors—an important gesture for international developers assessing entry into Mongolia’s nascent but resource-rich renewables market.

Local Coverage: isee.mn

From daily brief: 2026-01-27

9. Mongolia Signs 10-Year MOU with BCRC China to Advance Zero‑Waste and Hazardous Waste Management

Mongolia’s Ministry of Environment and Tourism and the Basel Convention Regional Centre for Asia and the Pacific (BCRC China) signed a 10‑year memorandum of understanding in Beijing to deepen cooperation on waste and chemicals management and accelerate implementation of the Basel Convention in Mongolia. The agreement establishes a legal framework for strengthening environmentally sound hazardous‑waste management, promoting zero‑waste and “waste‑free society” initiatives, and enabling Mongolian cities to join the Zero‑Waste Cities Network.

Planned activities include capacity‑building through trainings and seminars, technology transfer, experience‑sharing, and assessment of a possible BCRC China national office in Mongolia; the MOU is extendable by mutual consent. For international professionals, the deal signals potential long‑term technical support as Mongolia upgrades municipal systems, reduces hazardous and other wastes, and aligns its domestic governance with international waste‑management standards.

Local Coverage: montsame.mn

From daily brief: 2026-01-24

10. Parliament Speaker Plans First Official Visit to Russia to Discuss Fuel and Power Issues

Parliament Speaker N. Uchral will make his first official foreign visit since taking office, traveling to Russia from February 4–9 for talks expected to focus on fuel supplies and cross-border electricity—areas where Mongolia depends heavily on Russian imports and interconnection arrangements. The trip follows the prior speaker-level engagement in June 2023 when then-Speaker G. Zandanshatar met State Duma Chairman Vyacheslav Volodin, and comes after President Vladimir Putin’s Sept. 2–3, 2024 visit to Mongolia for the 85th anniversary of the Khalkhin Gol battles, signaling continued high-level Moscow-Ulaanbaatar engagement.

Analytically, outcomes could materially affect Mongolia’s energy security, price stability and winter supply planning amid recent regional market volatility and infrastructure constraints; however, no official agreements or deliverables have been announced. Observers should watch for concrete commitments on fuel volumes, tariff arrangements or grid coordination that would reduce short-term supply risk and influence Mongolia’s broader energy policy choices.

Local Coverage: unuudur.mn

From daily brief: 2026-01-29

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.