AGP Executive Report

Mongolia–China Diplomacy: President Ukhnaa Khurelsukh met China’s FM Wang Yi, stressing the “model” bilateral relationship and saying trade could hit $20bn this year. Public Service & Jobs Formalization: Khurelsukh also met hairdressers and beauty providers; the government plans to shift informal workers into formal employment, with revised employment and social welfare laws heading to parliament. Copper Industrial Push: Mongolia selected China’s NFC as the strategic partner for the Erdenet-based copper smelter, a $700m+ project targeting up to 120,000 tons of refined copper annually. Tourism Strategy: Ulaanbaatar hosted the Asian Tourism Forum (June 11–13), positioning Mongolia’s capital as a key gateway for tourism growth and digital transformation. Heritage & Rule of Law: France returned Tarbosaurus bataar and other dinosaur fossils to Mongolia after 13 years; an investigation into illegal excavation and smuggling is underway. Regional Connectivity: Mongolia’s neighbors keep opening routes—Kazakhstan’s new Kostanay–Tashkent direct flights aim to boost business and tourism. Mining Finance: Steppe Gold announced a settlement with Triple Flag that resolves disputes and supports its ATO Phase 2 expansion.

Mongolia–Copper Industry: The government has picked China’s NFC as the strategic partner for Mongolia’s first large copper smelting plant at Erdenet, a $700M+ project targeting up to 120,000 tons of refined copper a year. Tourism & Policy: Ulaanbaatar hosted the 15th Asian Tourism Forum (June 11–13), pushing Mongolia’s plan to turn tourism into a key diversification pillar, with talks on digital transformation and sustainable growth. Mining Finance: Steppe Gold said it has settled all disputes with Triple Flag, delivering remaining gold/silver obligations and resetting its long-term streaming framework as it moves into ATO Phase 2 expansion. Trade & Connectivity: Mongolia’s regional links got a boost as Woori Bank launched integrated services for Mongolian nationals, while air connectivity in the region expands with new direct routes (including Kazakhstan–Uzbekistan). Heritage & Culture: France returned smuggled dinosaur fossils to Mongolia, including a Tarbosaurus bataar skeleton, now headed to the National Museum of Natural Sciences. Health & Agriculture: Mongolia reported livestock culls tied to foot-and-mouth disease as outbreaks spread.

Copper Industry Push: Mongolia picked Chinese NFC as the strategic partner for the Erdenet-based copper smelting and processing plant, a $700M+ project aimed at producing up to 120,000 tons of refined copper annually. Social Protection Reform: The Cabinet approved a draft amendment to Mongolia’s General Law on Social Insurance, proposing a “fairer” pension system with higher payouts for longer contributors, plus a ceiling on employer contributions and incentives for voluntary savings-based pension accounts. Biodiversity Roadmap: Mongolia approved its National Biodiversity Strategy and Action Plan for 2026–2030, setting 20 targets and 108 actions including restoring 30% of degraded land and expanding protected areas. Tourism & Green Growth: Mongolia met CAREC/ADB to discuss digital transformation of tourism, greener regional products, and joint promotion via the “Silk Road Portal.” Cultural Heritage Returns: France returned illegally smuggled dinosaur fossils to Mongolia, including a Tarbosaurus bataar skeleton and 28 fossil sets, to be housed at the National Museum of Natural History. Diplomacy & Investment Climate: Foreign Minister Battsetseg Batmunkh spoke at Japan’s Nikkei “Future of Asia” forum, highlighting Mongolia’s economic outlook and cooperation prospects.

Copper Smelting Deal: Mongolia picked China’s NFC as the strategic partner to build the country’s first large copper smelter at Erdenet, a project pegged at over $700m and up to 120,000 tons of refined copper a year, with NFC selected from 13 bids. Social Insurance Overhaul: The Cabinet approved draft amendments to Mongolia’s General Law on Social Insurance, aiming for a “fairer” pension system via longer contribution benefits, a ceiling on employer contributions, start-up exemptions, and incentives for voluntary pension savings accounts. Biodiversity Roadmap: Mongolia approved its National Biodiversity Strategy and Action Plan for 2026–2030, targeting restoration of degraded land and wider protection, with 20 targets and 108 actions. Tourism & Regional Links: Mongolia met CAREC/ADB on expanding tourism cooperation, including digital transformation, green tourism, and joint cultural-heritage products promoted via the “Silk Road Portal.” Heritage Returns: Rare dinosaur fossils and a Tarbosaurus bataar skeleton were returned to Ulaanbaatar from France after legal disputes, to be housed at the new National Museum of Natural History. Energy Geopolitics Watch: A separate report highlights Russia-China efforts to build parallel energy supply routes that could reshape LNG flows and weaken Western leverage—an angle Mongolia will likely track as it diversifies partners.

Copper Smelting Deal: Mongolia’s Cabinet has selected NFC as the investment and cooperation partner for an Erdenet-based copper smelter and processing plant, aiming to boost higher value-added output, exports, jobs, and tax revenues. Social Insurance Reform: A draft amendment to the General Law on Social Insurance is set for Parliament, proposing a fairer pension system (higher pensions for longer contributors), plus measures like an employer contribution ceiling, start-up exemptions, and incentives for voluntary pension savings accounts. Biodiversity Roadmap: The government approved Mongolia’s National Biodiversity Strategy and Action Plan for 2026–2030, targeting restoration of degraded land, expanded protected areas, ecological corridors, and rehabilitation of mining-damaged areas. Tourism & Digital Cooperation: Mongolia discussed with CAREC/ADB ways to accelerate digital transformation in tourism, improve connectivity, and develop regional green tourism products using the “Silk Road Portal.” Heritage Returns: Smuggled dinosaur fossils—including a Tarbosaurus skeleton—have been returned to Mongolia after two decades and will be housed in the new National Museum of Natural History. Livestock Health Alert: Mongolia culled over 1,200 livestock after foot-and-mouth disease outbreaks, with heightened preparedness in affected western provinces. Regional Climate Credits: Kyrgyzstan and South Korea agreed to speed up joint carbon reduction projects, with Mongolia noted as already having carbon-credit rules. Global Context: The Global Peace Index 2026 ranks Taiwan 42nd for peacefulness; Mongolia is listed 9th among Asia-Pacific countries in the same report.

Foot-and-Mouth Shock: Mongolia culled 1,230+ livestock in Bayan-Ulgii and Khovd after an FMD outbreak, with SAT-1 detected for the first time in the country and heightened preparedness declared. Trade Momentum: Mongolia’s foreign trade hit $13.4bn in the first five months of 2026, with exports up sharply and a $3.6bn surplus, led by copper concentrate, coal, gold and lead concentrate. Green & Recycling Push: Mongolia and South Korea held an eco-innovation seminar for Mongolian SMEs on waste and recycling, aiming to boost circular-economy business and investment links. Banking for Mobility: Woori Bank, KT and Mongolia’s Trade and Development Bank signed an MOU to bundle remittances, mobile services and preferential finance for Mongolians moving to Korea. Mining & Markets: Azzuro Resources (AZ9) highlighted expanded Red Hill copper sulphide potential and a strategic pivot toward copper as electrification demand rises. Transport Connectivity: Mongolia discussed new transport corridors with Tajikistan and Turkmenistan, including rail, aviation and road links to boost trade. Regional Deal-Making: Xinjiang’s Trans-Altai cooperation platform expanded participation to include Kyrgyzstan and Turkmenistan, with Mongolia among attendees. Capital Markets Watch: The Mongolian Stock Exchange saw 5.6m securities traded worth MNT 11.54bn; major indices closed lower but conditions stayed relatively stable.

Mongolia–Korea Green Trade: Mongolia and South Korea are pushing waste and recycling cooperation for SMEs via a Mongolia-Korea Eco-Innovation Seminar, with circular-economy policy, recycling tech, and investment opportunities on the agenda. Cross-border Finance for Mongolians: Woori Bank, KT, and Mongolia’s Trade and Development Bank signed an MOU to bundle remittances, mobile services, and settlement support for Mongolians moving to South Korea. Trade Numbers: Mongolia’s foreign trade hit $13.4bn in the first five months of 2026, with exports up sharply and a $3.6bn surplus, led by copper concentrate, coal, gold, and lead concentrate. Mining & China Links: Mongolia’s mining firms visited China Railway Resources Group for modern management training, while Deputy PM Nomtoibayar toured Pipe China operations and discussed potential petroleum product imports via Bulgan port for the Mongol Refinery project. Transport Corridors: Mongolia’s transport ministry met Tajikistan and Turkmenistan to expand rail, aviation, and road links and explore a new Eurasian transport flow. Livestock Health Shock: Foot-and-mouth disease outbreaks in western provinces have triggered culls, with SAT-1 detected and heightened preparedness across affected areas. Capital Markets Watch: The Mongolian Stock Exchange saw 5.6m securities traded worth MNT 11.54bn; major indices fell slightly, with weaker activity in higher- and smaller-cap segments. Regional Connectivity Push: Xinjiang’s Trans-Altai cooperation platform expanded to include Kyrgyzstan and Turkmenistan, with Mongolia and Russia also participating in trade, logistics, energy, and tourism talks.

Banking & Telecom Deal: KT signed an agreement with Woori Bank and Mongolia’s Trade and Development Bank to offer integrated services for Mongolians entering South Korea, including KT’s “5G Welcome Plan” passport-only activation and joint remittance-linked promotions. Mining Update: Azzuro Resources (ASX:AZ9) reported another strong Red Hill copper-gold drill result, including 13.1m at 2.58% copper plus gold, silver and zinc, and says it has extended the massive sulphide system by 124m. Inflation Watch: Mongolia’s CPI inflation rose to 11.2% in May, driven mainly by higher imported goods prices and meat and some domestic commodity costs, while the central bank targets ~5% from 2027. Energy Trade: Russia’s Inter RAO expects cross-border electricity imports/exports to stay flat in 2026 at about 10bn kWh, with Mongolia among key destinations. Regional Transport: Mongolia hosted the CAREC Transport Sector Coordinating Committee meeting, discussing the CAREC Transport Strategy 2030 midterm review and plans to strengthen logistics and “Transit Mongolia” corridors. Trade Facilitation: Kyrgyzstan was elected chair of the UN ESCAP Paperless Trade Council for the third straight time, with Mongolia appointed deputy chair. Uranium Project: Orano began the construction phase for the Zuuvch Ovoo project in Mongolia’s Dornogobi, highlighting long-term uranium development plans. Construction Sector: Mongolia’s construction industry hit MNT 11.7tn in construction and major renovation by end-2025 and is preparing draft laws including a specialized housing bank. Agriculture & Risk: Foot-and-mouth disease preparedness was heightened in Khovd province, with bans on large gatherings and new SAT-1 strain detections reported.

Mongolia Macro: Mongolia’s inflation hit 11.2% in May, driven mainly by higher imported goods prices plus meat and some domestic commodity costs, while the central bank targets about 5% from 2027. CAREC Connectivity: A CAREC Transport Sector Coordinating Committee meeting is underway in Ulaanbaatar, with Mongolia pushing its “Transit Mongolia” plan and discussing the CAREC Transport Strategy 2030 midterm review and 2026 activities. Construction & Housing Finance: Mongolia’s construction sector reached MNT 11.7 trillion in major works by end-2025 (about 3.5% of GDP), with draft revised construction laws and a proposed specialized housing bank in the pipeline. Food & Agriculture Risk: Foot-and-mouth disease preparedness has been raised indefinitely in Khovd after late-May confirmation, with bans on large gatherings and new quarantine measures also reported in Bayan-Ulgii and Dundgovi. Trade Facilitation: Kyrgyzstan chairs the UN ESCAP Paperless Trade Council for a third straight term, with Mongolia named deputy chair, aiming to speed cross-border document exchange. Energy & Trade Exposure: A separate analysis flags how Strait of Hormuz disruptions could ripple into inflation and industry, arguing for stronger energy security via renewables and diversified supply routes. Mining Investment: Orano has started construction at Mongolia’s uranium project in Dornogobi, marking a new phase of the strategic cooperation.

Inflation Watch: Mongolia’s CPI inflation hit 11.2% in May, up 2.9 points year-on-year, driven mainly by higher imported goods prices plus meat and some domestic commodity costs. Construction Push: Mongolia’s construction and major renovation works reached MNT 11.7 trillion by end-2025 (about 3.5% of GDP), with over 100,000 jobs created; new draft laws include a specialized housing bank and updated construction/urban development rules. Transit & Trade: Ulaanbaatar hosted the CAREC Transport Sector Coordinating Committee meeting, with Mongolia pushing its “Transit Mongolia” goal and discussing the CAREC Transport Strategy 2030 midterm review and logistics center operations. Agriculture Risk: Foot-and-mouth disease outbreaks have been confirmed in Khovd, Bayan-Ulgii and Dundgovi, triggering indefinite preparedness in Khovd, quarantine and vaccination, and bans on large gatherings. Energy & Industry: Orano has started construction for its Mongolia uranium project at Zuuvch Ovoo, signaling renewed momentum for uranium development in Dornogobi. Tourism Momentum: Mongolia’s foreign tourist arrivals rose 32% in the first five months of 2026 (292,063 visitors), with May alone up 26% to 84,035. Finance for Entrepreneurs: EBRD will provide XacBank up to $80m to back youth entrepreneurship, supported by EU insurance and consulting/training for digital and financial upgrades. Ulaanbaatar Culture: A Silk Road exhibition opened in Kharkhorin, running until Sept. 15, as part of the 820th anniversary commemorations. Regional Business Links: Mongolia’s “Go Mongolia” booth won “Best Booth” at Seoul’s SITF 2026, boosting visibility for nomadic culture and tourism products.

Mongolia Tourism Momentum: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026 (+32% y/y), with May alone bringing 84,035 visitors (+26%), as the government pushes year-round travel under its “Years to Visit Mongolia” push to reach 1m arrivals annually. Youth Entrepreneurship Finance: The EBRD is providing XacBank up to $80m to back youth-led SMEs under its “Youth in Business” program, with EU-backed insurance and support for digital solutions and better financial management. Education Digital Shift: Mongolia’s Education Ministry is teaming up with Mozaik Education to introduce AI tools in schools and modernize textbooks with clearer visuals, interactive elements, and animated demonstrations. Health & Livestock Risk: Foot-and-mouth disease containment measures are tightening in Mongolia’s Khovd, Bayan-Ulgii, and Dundgovi provinces, including bans on large gatherings and vaccination/quarantine actions. Diplomacy & Trade Links: Mongolia continues expanding ties via new ambassador credentials (Belarus, Thailand) and ongoing parliamentary cooperation discussions, including with Israel.

Tourism Boost: Mongolia’s “Go Mongolia” booth won “Best Booth” at the Seoul International Travel Fair for the third time, highlighting nomadic culture and nature-led tourism. Tourism Demand: Foreign arrivals rose 32% in the first five months of 2026 to 292,063, with May alone bringing 84,035 visitors (+26% y/y). Youth Finance: The EBRD is lending XacBank up to $80m to back youth-led SMEs under its “Youth in Business” program, with EU-backed insurance and added digital/financial training. Education Tech: Mongolia’s education ministry is working with Mozaik Education to form a joint group to introduce AI tools in schools and modernize textbooks with more engaging visuals and interactive elements. Diplomacy & Trade Links: New Belarus and Thailand ambassadors presented credentials to President Khurelsukh, with talks on expanding economic cooperation and trade integration. Health & Livestock Risk: Foot-and-mouth disease was confirmed in Dundgovi, triggering quarantine, disinfection, vaccination, and similar restrictions in Khovd and Bayan-Ulgii. Energy/Mining Markets: Rio Tinto shares fell nearly 2% as iron ore prices softened, while the company points to production resilience including assets in Mongolia. Business Events: American Days marked the U.S. independence anniversary at Sukhbaatar Square, featuring an AmCham business networking session and innovation-focused activities.

Livestock Health: Foot-and-mouth disease has been confirmed in Dundgovi province, with quarantine and vaccination campaigns launched in affected soums, and similar outbreaks reported in Khovd and Bayan-Ulgii—an urgent reminder of how fast animal health risks can spread in Mongolia’s herding economy. Tourism & Trade: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32% year-on-year, with Russia, China and South Korea leading arrivals as the government pushes year-round tourism to cut seasonal swings. Diplomacy & Business Links: Mongolia’s parliamentarians met Israel’s embassy officials to deepen cooperation, especially in agriculture, water management and new technologies—aiming to turn dialogue into practical economic projects. COP17 Pipeline: Mongolia is opening proposal intake for COP17’s “Steppe Action Agenda” in August, inviting English-only pilot projects under rangeland, water-land nexus, and nature-based infrastructure themes to attract international donors and investors. U.S. Partnership Events: “American Days” marked the 250th anniversary of U.S. independence at Sukhbaatar Square, featuring AmCham business networking and youth sports alongside public cultural programming. Regional Security Forum: At the 11th Ulaanbaatar Dialogue, South Korea’s unification minister urged Mongolia to help restart dialogue with Pyongyang, while talks also covered trade, mining, infrastructure, healthcare and tourism.

Tourism Momentum: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32% year-on-year, with Russia, China and South Korea leading arrivals. The government is pushing year-round tourism and extending its “Years to Visit Mongolia” campaign through 2028 to target at least 1 million visitors annually. Green Investment Pipeline: Mongolia is preparing to host UNCCD COP17 in August and has launched the “Steppe Action Agenda,” opening proposals from June 4 for pilot projects under rangeland, water-land nexus, and nature-based infrastructure solutions, with submissions required in English for potential donor and investor visibility. Diplomacy for Trade: Mongolia and Israel discussed expanding cooperation tied to agriculture, water management and new technologies, while South Korea’s unification minister urged Mongolia to help restart dialogue with Pyongyang—alongside talks that also cover trade, mining, infrastructure and tourism. Law Enforcement Cooperation: The U.S.-linked ILEA Bangkok alumni networking event in Ulaanbaatar brought together Mongolian justice and police agencies, aiming to strengthen cross-border cooperation on fraud and financial crime. UNESCO Spotlight: UNESCO added new biosphere reserves worldwide on World Environment Day, including Mongolia, expanding the global network to 797 sites.

Tourism Boost: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32% year-on-year, with Russia, China and South Korea leading arrivals. COP17 Pipeline: Mongolia is opening proposal intake for its “Steppe Action Agenda” ahead of UNCCD COP17 in August, with pilot projects focused on rangeland, water-land nexus and nature-based solutions—applications are in English and will be showcased to donors/investors via the National Green Lab. Northeast Asia Diplomacy: South Korea’s Minister of Unification Jeong Dong-yeong met President Khurelsukh at the Ulaanbaatar Dialogue, urging Mongolia to help restart dialogue with Pyongyang; talks also covered trade, mining, infrastructure, healthcare and tourism. Green Tech & Data: China’s Hohhot is accelerating green-powered data center construction, using wind/solar and a unified “source-grid-load-storage” setup to expand computing capacity. Finance & Trade Links: Belarus’ ambassador presented credentials to Mongolia’s president, highlighting cooperation in healthcare, light industry, agriculture and engineering. Regional Labor Talks: Trade union leaders from Central Asia and Mongolia met with the ILO Workers’ Bureau in Geneva to discuss social dialogue and a 2026–2027 cooperation plan.

Tourism Boost: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32% year-on-year, with Russia, China and South Korea leading arrivals as the government pushes year-round travel. COP17 Pipeline: Mongolia is taking proposals for pilot projects under its “Steppe Action Agenda” ahead of UNCCD COP17 in Ulaanbaatar, with the National Green Lab supporting English-only submissions focused on rangelands, water-land links and nature-based infrastructure. Northeast Asia Diplomacy: South Korea’s Minister of Unification Jeong Dong-yeong met President Khurelsukh at the Ulaanbaatar Dialogue, urging Mongolia to help bring North Korea back to dialogue; Khurelsukh called ties with Seoul a “golden era.” Green Energy & Climate Finance: The EBRD projects Uzbekistan growth of 6.5% in 2026 and flags Middle East conflict-driven risks across Central Asia and Mongolia. Mining Update: Rio Tinto says Oyu Tolgoi’s underground ramp-up keeps 2026 copper production on track (800,000–870,000 tonnes), despite regulatory and geopolitical uncertainties.