Recent news
Investment agreement with Orano Mining approved
Mongolia’s Parliament has approved the investment agreement with French company Orano Mining, the investor behind the Badrakh Energy uranium project, and has authorized the cabinet to formalize the agreement.
A REVIEW OF THE MINING SECTOR IN 2024
Mining, minerals, and industrial sectors are fundamental pillars of Mongolia’s economy. The growth, advancements, and achievements in this sector serve as the backbone of the country’s overall economic expansion and sustainable development. The mining sector alone accounts for 30% of GDP, 72% of the industrial sector, 79% of foreign direct investment, 94% of exports, and a third of state budget revenue, underscoring the crucial role it plays in the nation’s economic framework.
TOUGH CHALLENGES AHEAD FOR COAL MINES AND POWER PLANTS
Thirty-four years after Mongolia transitioned to a market economy, the energy sector remains the only one yet to fully integrate into the market. It has long been a subject of public criticism that the sector operates at a loss and relies on government subsidies. However, the recent bold decision to raise energy prices to reflect real costs is being hailed as a 'historic' move.
TMK FAST-TRACKS MONGOLIA’S FIRST COAL SEAM GAS-TO-POWER GENERATION
Gas pioneer TMK Energy has taken a major step toward commercial gas production at its mammoth Gurvantes project in Mongolia, signing a binding memorandum of understanding (MoU) with German-backed power generation provider Jens Energie LLC to import a gas fired power plant from Germany in early 2025 at no cost to TMK.
A STRONGLY DEVELOPMENT-FOCUSED BUDGET
The Ministry of Finance asserts that the 2025 budget focuses on development and reflects significant reforms in budget planning. In this context, three key updates have been made: 1. Over 4% of GDP will be allocated to finance development projects.
2. Current budget expenditures will be capped at no more than 30% of GDP.
3. More than 2% of GDP will be designated for repaying the principal amount of government debt (calculated at nominal value). The Joint Government, guided by the motto "Courage for Rapid Development," highlights that it has allocated budget investments specifically for development. Over the four-year period from 2024 to 2028, a total of 149 projects are planned, including 14 mega projects.
ORICA MONGOLIA AT MONGOLIA MINING 2024: SHAPING THE FUTURE WITH TECHNOLOGY AND SUSTAINABILITY
Orica, a global leader in mining and infrastructure solutions with 150 years of experience, operates in Mongolia with our flagship project at Oyu Tolgoi. Our company provides advanced products and services, including digital and automation solutions, mining chemicals, and safety management. Orica’s GroundProbe™ radars are used at Oyu Tolgoi for slope stability monitoring, and we aim to support Mongolia's mining sector by offering tailored solutions that optimize operational costs and meet ESG goals.
STRENGTHENING TIES: AUSTRALIAN COMPANIES AT MONGOLIA MINING 2024
The annual MONGOLIA MINING 2024 International Mining Exhibition, one of the premier events in Mongolia’s mining industry, was held from October 8th to 10th at the Buyant-Ukhaa Sports Palace in Ulaanbaatar. This year's exhibition attracted hundreds of exhibitors and industry leaders from around the world, showcasing the latest technologies, innovations, and solutions in the mining sector.
ADB Approves Loan to Spur Climate Action in Mongolia
The Asian Development Bank (ADB) has approved a $100 million policy-based loan to help accelerate and sustain investment in climate action in Mongolia. The Accelerating Climate Investment Program (Subprogram 1) will help Mongolia achieve its nationally determined contribution (NDC) and implement its National Adaptation Plan (NAP), including promoting gender-responsive actions.
KH.SANCHIGDORJ: AERIAL GEOPHYSICAL RESEARCH UNDERWAY ACROSS MONGOLIA
The government believes that by intensifying thematic geological research and conducting detailed prospecting, it can identify areas with potential for mineral deposits and uncovering themto attract foreign investment.
Kh.Sanchigdorj, Director of the Geological Policy Department at the Ministry of Industry and Mineral Resources, presented the government's policy for the geological sector, detailing various projects and programs, including the progress of aerial electromagnetic research.
