AGP Executive Report

Mongolia–China Energy Push: President Ukhnaa Khurelsukh toured the Erdeneburen Hydropower Plant site, calling it a key outcome of Mongolia–China cooperation and signaling deeper energy and infrastructure ties. Fuel Security & Trade: Mongolia imported 24,000 tonnes of AI-92 gasoline in the first 11 days of September, while officials also move toward long-term fuel contracts to stabilize supply and pricing. CSG Production Watch: TMK Energy reported another milestone at its Gurvantes XXXV coal seam gas pilot, with weekly gas rates up 11% over August and multiple wells hitting record highs. Market-Making for Minerals: Erdenet’s molybdenum concentrate was sold on the Mongolian Stock Exchange for the first time, with the price rising to $33,767.9 per ton. Monetary Policy Drafting: The Bank of Mongolia opened a public consultation on its 2027 monetary policy directions, targeting inflation around 5% in the medium term. Natural Resources Transparency: Lawmakers submitted a draft law to improve transparency in natural resource use, including a unified digital portal and public oversight. Education Safety Funding: ADB approved a $3m grant to prevent and respond to gender-based violence in Mongolia, upgrading dormitories and rolling out prevention programs. Digital Commerce Partnerships: SUNMI signed deals with Turkey’s TOKEN and Mongolia’s M bank to expand commerce payment tech across Eurasia. Uranium Ambition: French Orano says it plans to start uranium mining in Mongolia by the end of the decade, aiming for “millions of pounds” annually. Infrastructure Finance Pressure: Mongolia is still servicing debt from the Chinggis Khaan International Airport loan and is already looking at a new Japanese concessional loan for expansion and modernization.

Energy & Infrastructure: Mongolia’s President Khurelsukh inspected the Erdeneburen Hydropower Plant in Khovd, calling it a key outcome of Mongolia–China cooperation and urging high-quality delivery as the 90MW project moves toward stable power for western provinces. Governance & Natural Resources: MPs submitted a draft Law on Transparency in the Use of Natural Resources, aiming for a unified digital portal and public reporting on minerals, water, forests, wildlife and plants to curb corruption and conflicts of interest. Monetary Policy: The Bank of Mongolia opened a public consultation on draft “State Monetary Policy Guidelines for 2027,” targeting ~5% inflation over the medium term, financial stability, and a more flexible tugrik exchange rate. Clean Energy Partnerships: The UAE and Mongolia signed an MoU to expand renewable energy and green hydrogen cooperation, including a joint working group and capacity-building. Public Investment & Culture: Construction of Mongolia’s National Museum of Natural Sciences reached 83%, with the President pushing for stronger collections, preservation, interactive exhibits and education programs. Trade & Connectivity: Mongolia’s President also vowed deeper energy and infrastructure cooperation with China, while a separate report notes Mongolia’s fuel supply pressures and fuel delivery focus.

Energy & Climate Diplomacy: The UAE and Mongolia signed an MoU to boost renewable energy and green hydrogen cooperation, including expertise exchange, capacity building, and a joint working group to pick and assess priority projects. Governance & Anti-Corruption: Lawmakers submitted a draft Law on Transparency in the Use of Natural Resources to create a unified system for collecting and publicly disclosing data on minerals, water, forests, wildlife and plants, with a centralized digital portal and public oversight. Public Finance & Monetary Policy: The Bank of Mongolia launched a public consultation on 2027 State Monetary Policy Guidelines, aiming for inflation around 5%, flexible tugrik exchange-rate adjustment, and stronger banking supervision and anti–money laundering/terror financing frameworks. Infrastructure & Culture: Construction of the National Museum of Natural Sciences in Ikh Tengeryn Am reached 83%, with President Khurelsukh urging international-standard collections, exhibitions, preservation, interactive displays and education programs. Urban Development: A new sports complex in Sukhbaatar District (Khoroo 13) has been completed and accepted for operation, adding multi-sport facilities for about 140,000 residents. Aviation & Trade Signals: China’s C919 made its first international flight to Ulaanbaatar, but aviation experts questioned it as a PR stunt due to the short, trial-like route and lack of overnight stay.

Energy & Trade: Mongolia will buy 10,000 tons of gasoline and 4,000 tons of jet fuel from China in September, with further October requests for additional AI-92 gasoline and diesel; talks also aim to shift procurement toward longer-term supply contracts with stable volumes and transparent pricing. Monetary Policy: The Bank of Mongolia launched a public consultation on draft 2027 State Monetary Policy Guidelines, targeting ~5% medium-term inflation, flexible tugrik exchange-rate adjustment, and tighter banking supervision and anti–money laundering/terror financing frameworks. Clean Energy Partnerships: Mongolia and the UAE signed an MoU to boost renewable energy and green hydrogen cooperation, including expertise exchange, capacity building, and a joint working group to identify feasible projects. Infrastructure & Local Economy: A new sports complex in Sukhbaatar District (Khoroo 13) has been completed and accepted for operation, giving 140,000 residents new facilities for year-round activity. Business & Investment Pipeline: Mongolia signed an MoU with BlackRock FMA, signaling continued efforts to deepen investment and financial cooperation.

Monetary Policy Consultations: The Bank of Mongolia opened a public consultation on its draft “State Monetary Policy Guidelines for 2027,” outlining plans to keep inflation around 5% over the medium term, support sustainable growth, and strengthen banking supervision and anti–money laundering systems. Energy & Trade Security: Mongolia is working to stabilize fuel supplies with CNPC, agreeing to deliver 10,000 tons of gasoline and 4,000 tons of jet fuel in September, with additional requests for AI-92 gasoline and diesel in coming months, alongside a shift toward longer-term contracts coordinated with railway logistics. Clean Energy Partnerships: Mongolia and the UAE signed an MoU to expand renewable energy and green hydrogen cooperation, including knowledge exchange, capacity building, and a joint working group to identify feasible projects. Education Investment: ADB approved an additional $130 million for Mongolia’s education expansion, funding 33 school and kindergarten projects and upgrades to education management and learning materials. Economy Snapshot: Mongolia’s foreign trade turnover hit $22.8 billion in the first eight months, with exports up strongly (driven by copper ore/concentrate and coal) and a larger trade surplus. Local Development: A new sports complex in Sukhbaatar District (Khoroo 13) has been completed and accepted for permanent operation, adding facilities for football, tennis, basketball, and indoor training. Regional Tourism Planning: Mongolia joined CAREC’s tourism working group in Tashkent, discussing cross-border travel integration, an upgrade to the “Visit Silk Road” portal, and adoption of GSTC standards.

Monetary Policy Consultations: The Bank of Mongolia opened a public consultation on its draft 2027 State Monetary Policy Guidelines, aiming for inflation around 5% over the medium term, tighter macroprudential coordination, and a more flexible tugrik exchange rate while strengthening banking supervision and anti–money laundering systems. Energy & Trade: Mongolia is set to buy 10,000 tons of gasoline and 4,000 tons of jet fuel from China in September, with talks also covering longer-term, contract-based fuel supply and pricing formulas. Bilateral Clean Energy Deal: Mongolia and the UAE signed an MoU to boost renewable energy and green hydrogen cooperation, including a joint working group for project feasibility and capacity building. Foreign Trade Surge: Mongolia’s foreign trade turnover hit USD 22.8 billion in the first eight months, up 36.8%, with exports rising faster and copper ore/concentrate and coal leading gains. Capital Markets: Sendly NBFI launched primary trading of “Sendly Bond 3.0,” offering 120,000 fixed-rate bonds to raise 12 billion MNT at a 19% interest rate for 24 months. Education Finance: ADB approved an additional $130 million for Mongolia’s education expansion, funding new and upgraded schools and kindergartens for about 11,000 students and preschoolers. Local Infrastructure: A new sports complex in Sukhbaatar District (Khoroo 13) has been completed and accepted for permanent operation, adding facilities for football, tennis, basketball, fitness, and youth recreation for 140,000 residents.

Energy & Hydrogen Deals: Mongolia and the UAE signed an MoU to boost renewable energy and green hydrogen cooperation, including expertise exchange, capacity building, and a joint working group to identify and assess potential projects. Fuel Supply Update: Mongolia agreed with CNPC to buy 10,000 tons of gasoline and 4,000 tons of jet fuel in September, with additional requests for AI-92 gasoline and diesel in coming months, alongside a push toward longer-term, stable supply contracts. Education Financing: The ADB approved a $130 million loan to expand Mongolia’s education capacity, funding construction and upgrades for 33 schools and kindergartens and support for about 11,000 students and preschoolers. Trade Momentum: Mongolia’s foreign trade turnover hit $22.8 billion in the first eight months, with exports up sharply and copper ore, coal, and gold among the main drivers. Capital Markets: Sendly NBFI launched trading of “Sendly Bond 3.0,” offering 120,000 fixed-rate bonds to raise 12 billion MNT at a 19% interest rate for a 24-month term. Digital & Connectivity Tech: Mobinet Mongolia adopted Plume’s AI-optimized Wi‑Fi subscriber experience platform, positioning it as an end-to-end AI approach for customer care and network performance. Regional Tourism Planning: CAREC tourism officials met in Tashkent to advance cross-border travel integration, including upgrades to the “Visit Silk Road” portal and adoption of GSTC standards. Energy Sector Reform Watch: Mongolia’s fuel procurement and energy security remain in focus as procurement shifts and reform plans face practical constraints.

UAE Energy Deal: Mongolia’s Deputy PM Dorjkhand Togmid signed an MoU with the UAE Ministry of Energy and Infrastructure at AIM 2026, targeting renewable power, green hydrogen, grid upgrades, storage, and possible electricity/hydrogen exports to regional markets, plus training and investment attraction. Sovereign Wealth Market Prep: Mongolia also signed an MoU with BlackRock Financial Markets Advisory to support capital-market steps under the “Chuluulye” initiative, including consolidating state-owned enterprise shares via investment instruments and offering them domestically and abroad. Fuel & Air Quality Push: Ulaanbaatar laid out measures for the Sept. 15 heating season—improved fuel output, semi-coke sales points, tighter stock controls via the “Khotula” app, and coal imports for processing until a Baganuur plant starts in 2028. UNCCD After COP17: Mongolia hosted UNCCD COP17 in August and highlighted its “Steppe Plan” and flagship initiatives, while a separate UNCCD COP17 wrap notes Indigenous participation and key promises were still blocked or deferred. Energy Trade Signals: Russia’s electricity exports to Mongolia fell 6% to 450 million kWh in Jan–Jul 2026, even as overall Russian exports rose. Mining Investment Outlook: Orano’s CEO said Mongolia’s Zuuvch Ovoo uranium project could reach multi-million pounds per year by decade’s end, with major spend commitments already underway. Addressing the Ger City: South Korea will fund an 11 billion won aid project to roll out road-name and building-number addresses in Ulaanbaatar’s ger districts through 2029, improving logistics and digital services. Food Trade Update: Russia exported over 290k tons of agri goods to Mongolia in 7 months of 2026 (up 2.3x by weight), led by wheat and flour products. Parliament-to-Parliament Ties: Mongolia and Vietnam advanced cooperation through official talks, aiming to implement MoUs through 2028 and deepen trade, investment, and transport links.

Energy Deals: Mongolia and the UAE signed an energy cooperation MoU covering renewables, green hydrogen, grid transmission, storage, and potential electricity/hydrogen exports to regional markets. Capital Markets: Mongolia signed an MoU with BlackRock Financial Markets Advisory to support reforms under the “Chuluulye” initiative, including information exchange on consolidating state-owned enterprise shares and offering them on domestic and international capital markets. Fuel & Air Quality: Ulaanbaatar rolled out measures for the Sept 15 heating season, including improved fuel production, semi-coke sales points, tighter stock controls via the “Khotula” app, and plans to import coal while a Baganuur coal processing plant is built for 2028. Trade & Industry: Mongolia’s foreign trade turnover jumped 36.8% y/y to $22.8B in Jan–Aug 2026, with mining exports nearly 90% of total exports; meanwhile Russia exported 290k tons of agri goods to Mongolia in 7 months, up 2.3x by weight. Infrastructure & Addressing: South Korea will fund an 11bn won ODA project through 2029 to introduce a Korean-style road-name address system in Ulaanbaatar’s ger areas. Policy & Health: The government approved the “Year of Health Support – 2027” action plan, targeting continuity of subsidized medicines, digital health transformation, and better access to care. Bilateral Politics: Mongolia and Vietnam advanced parliamentary cooperation through official talks and MoUs, aiming for implementation plans through 2028.

Mongolia Trade Surge: Mongolia’s foreign trade turnover jumped 36.8% year-on-year to $22.8B in the first eight months of 2026, with a $6B surplus, driven by mining exports (about 90% of exports) and China remaining the top partner. Industrial Push: Mongolia plans an $800M steel complex in Darkhan-Uul to cut reliance on China, targeting 1M tonnes of steel a year; five Chinese firms are shortlisted, with an agreement expected by Oct 2026. State Sector Reshuffle: The government approved measures to implement the new governance law for state-owned enterprises, cutting staffing by 30%, removing 25 organizations from the budget, and aiming for MNT 30B in annual salary and recurrent savings from 2027. Audit Spotlight: Mongolia’s National Audit Office launched a financial and compliance audit of COP17 funding and spending (2023–2026), covering ministries and the organizing committee. Bilateral Business Drive: Montenegro and Mongolia are moving from agreements to action, with a business roundtable focused on direct contacts, tourism, and trade; a joint declaration also calls for more regular parliamentary links. Aviation Links: Ulaanbaatar’s airport operator signed an MoU with Hokkaido Airports to support new Mongolia–Hokkaido flight routes and civil aviation cooperation.

State-Owned Enterprise Restructuring: Mongolia’s government approved measures to cut staffing at state-owned enterprises by 30%, remove 25 organizations from the state budget, and reorganize 108–324 positions, targeting about MNT 30 billion in annual salary and recurrent savings starting with implementation plans for 2027. COP17 Financial Scrutiny: The National Audit Office launched a financial and compliance audit of COP17 funding and expenditure, covering 2023–2026 decisions, budgets, procurement contracts, and spending across multiple ministries and agencies tied to the UN desertification conference hosted in Mongolia. Demographics & Labor Market: Mongolia’s census data shows 99% of residents are Mongolian citizens and 1% are foreign nationals; foreign nationals living in Mongolia for six months or longer rose to 35,446 (+58.1% since 2020), with growth linked to mining, infrastructure, and industrial zones in provinces like Dornogobi, Tuv, and Umnugobi. Trade & Diplomacy: A Mongolia–Montenegro business roundtable focused on diversifying trade and expanding B2B ties during President Jakov Milatović’s state visit. Energy & Geopolitics: Power of Siberia 2 talks reportedly stalled over a gas price gap, with China seeking far lower pricing than Russia’s reference to Power of Siberia 1. Aviation Links: New Ulaanbaatar International Airport (NUBIA) signed an MoU with Hokkaido Airports to explore new Mongolia–Hokkaido flight routes, supporting tourism and aviation workforce development. Corporate Finance: Erdene Resource Development entered an automatic securities purchase plan alongside its normal course issuer bid to buy shares for cancellation, including during trading blackouts.

Fuel Crisis: Mongolians are facing five-hour queues and soaring prices as a Russia-linked petrol shortage bites, with authorities using purchase caps, a ban on stockpiling, and license-plate rationing to manage supply. Energy Reform: The crisis is also spotlighting Mongolia’s winter power vulnerability, where heating demand strains the Soviet-era system and leaves the capital reliant on imports during cold snaps. Tourism & Trade: Mongolia welcomed 705,098 foreign tourists in the first eight months of 2026, up 17.9%, with Russia, China, South Korea, Japan and Kazakhstan leading arrivals. Diplomacy & Business: Mongolia and Montenegro advanced cooperation during a state visit, agreeing to expand trade, economy, education, science, media and people-to-people ties, with a private-sector roundtable planned to spur partnerships. Agriculture: Mongolia’s harvest commission is urging faster harvesting and zero-waste practices as colder weather approaches, supported by working-capital and concessional loans under the Atar-4 campaign. Media Cooperation: China and Mongolia called for stronger journalism links to deepen mutual understanding, including at the 16th China-Mongolia Media Forum in Hohhot.

Mongolia–Montenegro Diplomacy: President Khurelsukh and Montenegro’s Jakov Milatović issued a joint statement after official talks, agreeing to expand cooperation in trade, economy, education, culture, science, media and people-to-people ties; a Joint Declaration and multiple agreements (including visa-free diplomatic/official travel and diplomatic training cooperation) were signed. Tourism Boost: Mongolia welcomed 705,098 foreign tourists in the first eight months of 2026, up 17.9%, with Russia, China, South Korea, Japan and Kazakhstan leading. Energy & Fuel Stress: Fuel shortages tied to reliance on Russia worsened, with queues reported in Ulaanbaatar; a prime-ministerial task force ordered urgent deliveries to 17 soums in Bulgan, Dornod, Dundgobi, Umnugobi and Sukhbaatar, after 30 soums had run out of fuel. Food Security Push: With snow and colder weather expected for agricultural regions, the State Harvest Commission urged faster harvesting and zero-waste methods, backed by working-capital and concessional loans under the “Atar-4” campaign and plans to mobilize students and military personnel. Green Industry Deal: BYD investor relations reported a strategic cooperation agreement with FinDreams Battery and Zero Carbon Engine Technology Group to develop zero-carbon projects in Mongolia’s mines, logistics and industrial parks. Mining/Power Watch: Rio Tinto’s Bell Bay aluminium smelter electricity contract talks with Hydro Tasmania remain unresolved as the current deal nears expiry, keeping the plant’s costs in focus.

Renewables & Power Infrastructure: Mongolia’s first competitive renewable energy auction is now moving from plan to contracts, with the National Dispatching Centre signing power purchase agreements for 220 MW of solar PV plus 135 MW/440 MWh of battery storage across five provinces; tariffs range from $0.0485/kWh (Dundgovi) to $0.078/kWh (Khentii), and a second auction is set for Sept. 11. Budget & Household Support: Mongolia’s parliament opened an irregular session to debate 2026 budget amendments, redirecting MNT 1.44 trillion in operating savings toward higher pensions, public-service salary adjustments, the “School Close to Home” program, and expanded strategic food reserves, alongside stabilizing energy supply without raising prices. Heating Project Progress: Ulaanbaatar’s 63 MW Dambadarjaa thermal power plant is 70% complete and is expected to support reliable heat for about 5,000 households, with district-heating connections aided by the “Selbe 20-Minute City” apartment buildout. AI Governance Debate: A commentary argues Mongolia’s AI push needs a practical verification standard inside workflows before systems influence decisions, citing fragmented data and governance gaps as operational risks. Mining & Exploration: Azzuro Resources reports new resistivity anomalies and drill-ready targets at its Oval Cu-Ni-PGE project after a 3D IP survey, including a standout deep extension signal. Korea Medical Tourism: Korea Tourism Organization’s roadshow in Ulaanbaatar and Dalanzadgad targets Mongolia’s mining workforce with tailored health screenings and packages, aiming to convert high-spending industrial visitors into sustained demand.

Energy & Infrastructure: Ulaanbaatar’s 63 MW Dambadarjaa thermal power plant is 70% complete, with boilers, coal storage and pollution-control equipment under construction; once online it should supply heat to about 5,000 households and ease winter restrictions. Renewables Push: Mongolia has completed its first competitive renewable energy auction, awarding 220 MW solar PV and 135 MW/440 MWh battery storage across five provinces, with a second auction set for Sept. 11. Budget & Governance: Parliament opened an irregular session to debate 2026 budget amendments, with lawmakers urging measures to ease household pressure and protect long-term stability while expanding private-sector freedom. Energy Security & Investment Climate: Prime Minister Uchral ordered oil exploration and extraction to be protected by Internal Troops, citing national security and the need to reduce fuel-import dependence. Mining & Capital Markets: Mongolia’s sovereign wealth fund is positioning state-owned miners to attract global investors, while Korea is targeting Mongolian miners for medical tourism. Exploration Update: Azzuro Resources reports new 3D IP anomalies at its Oval Cu-Ni-PGE project, defining five priority targets and importing a new DHEM system for September surveys. Regional Diplomacy: Mongolia’s ties with Japan deepen as foreign ministers meet, and Montenegro’s president is set for a state visit to Ulaanbaatar (Sept. 8–10).

Copper Market Watch: Analysts say copper prices may need to rise further from record levels to close a supply gap driven by falling ore grades, higher capex and fast-growing demand from AI and electrification. Mongolia–Russia Trade & Logistics: Ulaanbaatar Railway reports freight volumes on track for a record year, with Mongolia-Russia transport cooperation also including a mobile medical train service for thousands. Mongolia–Japan Aviation Deal: President Khurelsukh met Japan’s FM Motegi, reaffirming the “Special Strategic Partnership” and welcoming a concessional-loan plan to expand Chinggis Khaan International Airport capacity. Mongolia–Europe Diplomacy: Montenegro’s president will visit Mongolia Sept 8–10, aiming to deepen trade, investment, education, tourism and climate cooperation. AI Hardware & Data Centers (Regional Impact): DeepSeek plans a massive Inner Mongolia data center using at least 160,000 Huawei Ascend 950DT chips for inference, highlighting the wider shift toward domestic AI compute. Mining Tech Trend: Autonomous battery-electric haulage is scaling up, with reports of 1,500+ electric autonomous mining trucks deployed. Tourism Cooperation: East Asia tourism leaders push “coopetition” to grow the regional market together rather than compete for the same travelers. Digital Payments & Relief: Nepal’s QR-code donation system for flood relief shows how fast digital rails can mobilize funds—an approach relevant to disaster-ready economies. Construction Sector Milestone: Mongolia marks 100 years of modern construction, with a push toward greener, safer, disaster-resilient development beyond the capital.