Mongolia Weekly: Mongolia trims Oyu Tolgoi costs, fast-tracks coal rails, advances pipeline plan

November 15, 2025 to November 21, 2025

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

1. Government and Rio Tinto Sign Protocol to Cut Oyu Tolgoi Fees as Talks to Lower Shareholder Loan Interest Continue

The Government of Mongolia and Rio Tinto have signed a negotiation protocol aimed at sharply reducing Oyu Tolgoi’s management fees and strengthening corporate governance, while parallel talks continue on lowering interest rates on shareholder loans that fund the mine’s costly underground expansion. Industry and Mineral Resources Minister G. Damdinyam said Mongolia will submit detailed feedback on proposed management contract changes in November and seeks board-level decisions this year; Rio Tinto has already presented a loan‑interest reduction proposal to a working group led by Finance Minister B. Javkhlan, with negotiations ongoing to agree a new rate.

Prime Minister G. Zandanshatar has pressed for decoupling the loan‑interest discussions from licensing issues involving Ontra LLC and urged appointment of a Mongolian CEO to better protect state interests as Oyu Tolgoi’s board meets this week to name a successor to outgoing CEO Deirdre Lingenfelder. Officials frame the package—if agreed—as a way to lower project carrying costs, accelerate state dividends and taxes, and align fee methodology with international market norms; Rio Tinto Copper CEO Katy Jackson said the company is ready to work “openly and expeditiously” toward a mutually beneficial outcome.

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

From daily briefs: 2025-11-18, 2025-11-19, 2025-11-21

2. Coal Export Boost Proposed to 100 Million Tons with Cross-Border Rail Push and Trade Diversification Aims

Mongolian Prime Minister G. Zandanshatar told Chinese Premier Li Qiang in Moscow that Mongolia aims to raise coal exports to China to 100 million tons and accelerate cross‑border rail links at Shiveekhuren–Sekhe, Hangi–Mandal and Bichigt–Zuun‑Khatavch, as part of a broader push to diversify trade and expand bilateral commerce to USD 20 billion. Officials also flagged progress on a trilateral Russia–Mongolia–China gas pipeline and said sanitary‑phytosanitary measures will be strengthened to boost agricultural exports.

Finance Minister B. Javkhlan said Mongolia plans to export at least 90 million tons of coal in 2025 (up from an expected 85 million tons this year), noting August shipments hit 8.7 million tons and border throughput improvements at crossings such as Gashuunsukhait–Gants Mod support the target. The strategy signals a transport‑first approach to unlock logistics capacity, rebalance Mongolia’s export basket away from price dependence, and anchor energy transit cooperation—outcomes that will depend on sustained Chinese demand and continued infrastructure gains.

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

From daily briefs: 2025-11-15, 2025-11-20

3. Task Force Formed to Advance ‘Soyuz Vostok’ Gas Pipeline Through Mongolia

Russia and Mongolia will create a special task force to coordinate construction of the Soyuz Vostok pipeline — the Mongolian segment of Russia’s Power of Siberia‑2 route — following talks in Moscow between Russian Energy Minister Sergey Tsivilev and Mongolia’s Minister of Industry and Mineral Resources G. Damdinnyam. The announcement, made during Prime Minister G. Zandanshatar’s official visit tied to the SCO heads of government council, aims to streamline permitting, routing and timeline decisions; Moscow framed the move as a step to ensure timely delivery and deeper trilateral cooperation after Gazprom and China National Petroleum Corporation signed a memorandum on Power of Siberia‑2 in September 2025.

For international energy and policy professionals, the task force signals higher-level political backing that could accelerate project implementation and reduce commercial and regulatory friction on the route through Mongolia — potentially facilitating increased Russian gas exports to China. Key names and dates to watch: Sergey Tsivilev, G. Damdinnyam, PM G. Zandanshatar, and the September 2025 Gazprom‑CNPC memorandum that underpins current momentum.

Local Coverage: montsame.mn

From daily brief: 2025-11-20

4. Parliament Advances 2026–2030 Development Blueprint as 2026 Budget-Linked Laws Pass

Parliament advanced Mongolia’s 2026–2030 five‑year development framework to first reading while passing several 2026 budget‑linked laws, including amendments to VAT, changes to the public‑private partnership (PPP) regime, authorization for new government securities, and measures to operationalize the Sovereign Wealth Fund. The plan sets out 87 projects valued at MNT 66.6 trillion, financed through the state budget, external loans and aid, and aims to reduce dependence on single markets and imported energy and fuel; Prime Minister G. Zandanshatar said the strategy focuses on economic diversification with measurable targets for human development and pasture management.

Lawmakers also required steps to declassify parts of certain Tavan Tolgoi agreements and authorized Ulaanbaatar to issue domestic bonds to meet municipal needs. Debate noted weak execution of the 2021–2025 plan and called for reviewing wage coverage in education, signalling implementation and fiscal‑governance risks that will be critical for investors and development partners monitoring Mongolia’s reform momentum and debt profile.

Local Coverage: unuudur.mn, urug.mn, itoim.mn, isee.mn, gogo.mn, unuudur.mn

From daily brief: 2025-11-15

5. Prime Minister Orders Tax Overhaul and Full Revenue Delivery with AI-Driven Compliance

Mongolian Prime Minister G. Zandanshatar has ordered the General Department of Taxation to meet the legally approved MNT 17.9 trillion revenue target for 2025 despite parliament cutting the tax target by MNT 3.7 trillion, noting that consolidated budget revenues were MNT 1.6 trillion below plan and tax receipts MNT 4.4 trillion short as of October 31 (collections ≈ MNT 14 trillion). He directed a shift from punitive enforcement toward prevention, advisory support and joint development, expanded risk-based, data-driven oversight, and deployment of AI to improve taxpayer registration and coverage; he also instructed preparations for VAT refund reform and non-disruptive resolution of corporate tax arrears.

The measures combine tougher accountability—sharper penalties and incentives for enforcement officers—with technology-led compliance, reflecting an attempt to boost collection without heavy-handed inspections (“A tax inspector should not automatically mean inspection and pressure”). For international professionals, the move signals stronger state-driven revenue mobilization supported by digitalisation and AI, with implications for compliance costs, corporate cash flow management, and potential changes to VAT refund processes in 2025.

Local Coverage: news.mn, montsame.mn, urug.mn

From daily brief: 2025-11-15

6. Central Bank Governor’s Six-Year Term Ends Friday as Successor Talk Centers on Two Candidates

Bank of Mongolia Governor B. Lkhagvasuren’s six‑year term expires on November 22, triggering the statutory succession process under the Central Bank Law that requires Parliament to appoint a new governor after a nominee is submitted by the Speaker and vetted in a hearing. Lkhagvasuren was originally appointed on November 22, 2019, on the recommendation of then‑Speaker G. Zandanshatar.

Local reporting indicates early maneuvering between two frontrunners: Economic Development Minister Ch. Khurelbaatar and National Statistics Office head B. Batdavaa. Parliament’s timetable and final choice will be watched closely by markets because a leadership change could affect monetary policy continuity, coordination with fiscal authorities and investor sentiment in Mongolia’s banking and financial sectors.

Local Coverage: isee.mn

From daily brief: 2025-11-19

7. Prosecutors Indict MP S. Ganbaatar on Bribery, Illicit Enrichment, and Money Laundering Charges, Case to Move to Court

Ulaanbaatar prosecutors have formally indicted Member of Parliament S. Ganbaatar on charges of accepting bribes (Criminal Code art. 22.4), illicit enrichment (22.10) and money laundering (18.6), after the Anti-Corruption Agency completed its probe and recommended prosecution, isee.mn reports. Senior Prosecutor G. Gereltuya of the Capital City Prosecutor’s Office said Ganbaatar declined to testify during the investigation, stating he will give evidence only in court; his subsequent petition to the Prosecutor General was rejected.

The case—now moving to trial—follows Ganbaatar’s failed September 25 bid to have parliament seek a Constitutional Court ruling that would shield MPs from investigation during their four‑year term. The indictment underscores Mongolia’s intensifying anti‑corruption enforcement and raises questions about parliamentary immunity and political risk ahead of upcoming legislative sessions.

Local Coverage: isee.mn

From daily brief: 2025-11-18

8. Parliament Sets December Hearings to Scrutinize Oyu Tolgoi Agreements and Financing Terms

Mongolia’s Parliament has scheduled open evidentiary hearings on the Oyu Tolgoi copper-gold project for December 8–12, 2025, convened by the State Great Khural’s Temporary Oversight Committee chaired by MP O. Batnayamrdal. The committee will examine two core issues: state equity claims over the “Javkhlant” and “Shivee Tolgoi” licences (including the status of the related “Ontre” LLC documents) and the terms of shareholders’ agreements and financing interest charges under a 2025 government mandate. About 300 witnesses have been summoned — spanning three former presidents, current and former prime ministers and ministers (including former PM S. Bayar, who has so far declined in‑person testimony), MPs, senior civil servants, SOE leaders and private and foreign company representatives such as Rio Tinto and Oyu Tolgoi LLC.

The hearings aim to clarify opaque past decisions and growing public concern over Mongolia’s debt exposure and the project’s cost profile; commentators note Mongolia has captured roughly 25% of project benefits versus public expectations above 50%. Oyu Tolgoi has reiterated cooperation, offering site visits and having provided over 30,000 documents, but said management cannot attend the committee meetings. Outcomes could materially affect renegotiation of loan and management costs, the legal status of Ontre and related licences, and long‑term production planning and community obligations.

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

From daily briefs: 2025-11-15, 2025-11-18, 2025-11-21

9. N. Uchral Elected Parliament Speaker, Pledges Rule‑of‑Law Reforms and Pro‑Market Legal Overhaul

Parliament elected N. Uchral as Speaker with 82.5% support, charging him to lead a reform agenda focused on rule of law, transparency and pro‑market legal overhaul. Uchral pledged to end perceived legal impunity for MPs, strengthen parliamentary oversight of the government and open Mongolia’s financial sector to greater competition — including allowing foreign banks — while prioritizing upholding the Constitution, evidence‑based legislation, robust policy debate and a more public‑facing parliament.

Planned actions include an AI‑assisted review and revision of hundreds of conflicting or restrictive laws, an Economic Freedom bill, tighter governance and audits of state‑owned enterprises with targeted privatizations, and restraint on fiscal expansion to ease inflation; he also signaled pension, social insurance and targeted mortgage support reforms. The program signals a shift toward market‑friendly regulation and institutional accountability that could attract foreign capital but will require careful implementation and political consensus.

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

From daily brief: 2025-11-21

10. Parliamentary Committees Back Continued Exploration at Khovd’s Kharzan Buregtei Rare Earths Deposit, Urge Legal Clarity and Environmental Safeguards

Mongolia’s parliament committees have recommended continuing exploration at the Kharzan Buregtei rare earths prospect in Khovd province to better define reserves and refine processing plans, while calling for legal clarity, environmental safeguards and community engagement before any mining begins. At an oversight hearing, officials and experts reported no mining activity to date, natural radioactivity levels below harmful thresholds, and no substantiated evidence of severe environmental damage, but flagged significant water demand and the need for social and water‑impact assessments; MPs B. Uyanga, S. Odontuya and L. Munkhbayasgalan emphasized separating rare earths from uranium concerns, ensuring transparent consultation and prioritizing regional water issues.

The committees urged harmonization of overlapping Minerals and Nuclear Energy laws to reduce investment risk and encouraged development of mid‑stream processing capacity to produce mixed rare earth oxides domestically and capture more value. The recommendations signal a cautious, investment‑friendly path forward—continued exploration with tighter regulatory certainty and environmental monitoring—while delaying any exploitation until hydrological, social and legal risks are resolved.

Local Coverage: ikon.mn, urug.mn

From daily brief: 2025-11-21

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.