The Mongolian Mining Journal

AUSTRALIA DAY 2025 Australia Day is observed on 26 January every year. On our national day, we reflect on 65,000 years of history and culture. We celebrate our nation, its achievements and most of all, its people.

IFC Invests in Ulaanbaatar’s Pioneering Municipal Bond to Support Mongolia’s Energy Transition The Governor’s Office of the Capital City of Mongolia (MUB) has successfully issued its first over-the-counter (OTC) market bond through a private placement to the International Finance Corporation (IFC). The proceeds will fund a new 50-megawatt Battery Energy Storage System (BESS) in Baganuur District, enhancing Mongolia's power supply reliability and supporting renewable energy integration.

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.

S.SANASER: GOOD CORPORATE GOVERNANCE ENHANCES PROFITABILITY, EFFICIENCY, AND ACCOUNTABILITY. We spoke with S. Sanaser, an economist, PhD in Business Administration, and governance consultant, about the development of management systems and governance in state-owned companies.

GREEN ENERGY SECTOR ATTRACTS $1 BILLION IN FINANCING On January 21, Mongolia’s Deputy Prime Minister, Dorjkhand Togmid, and the First Vice President of the European Bank for Reconstruction and Development (EBRD), Jürgen Rigterink, signed a Memorandum of Understanding to collaborate on renewable energy investments.

IFC Announces Matthieu Le Blan as New Resident Representative for Mongolia Ulaanbaatar, Mongolia, January 21, 2025— IFC, a member of the World Bank Group, has announced the appointment of Matthieu Le Blan as Resident Representative for Mongolia, based in Ulaanbaatar.

THE INVESTMENT AGREEMENT WILL BE SIGNED ON JANUARY 17 The Government of Mongolia has decided to sign an Investment Agreement with Orano Mining on January 17.

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.

Golomt Bank issues a 50 million USD green bond, setting a new sustainable finance standard Golomt Bank successfully issued a five-year green and social bond with an eight percent annual interest rate, raising 50 million USD on the international market. This bond is the lowest-interest bond ever issued by a Mongolian corporate entity on the global market.

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.

PRIME MINISTER L. OYUN-ERDENE SUBMITS STRATEGIC PROJECTS INCLUDED IN THE GOVERNMENT'S 14 MEGA PROJECTS TO THE SPEAKER OF THE PARLIAMENT Prime Minister L. Oyun-Erdene has presented two draft resolutions to the Speaker of the Parliament, D. Amarbayasgalan, on December 25: the draft resolution on Approving the Guidelines for Concluding an Agreement to Implement the Construction of the Gashuunsukhait-Gantsmod Cross-Border Railway between the Government of Mongolia and the Government of the People's Republic of China and the draft resolution on Replacing the State's Ownership Share in Strategic Mineral Deposits.

THE GOVERNMENT OF CHINA HAS EXPRESSED ITS READINESS TO RESOLVE THE GASHUUNSUKHAIT-GANTSMOD PORT PROJECT THROUGH AN INTERNATIONAL AGREEMENT The Prime Minister of Mongolia, L. Oyun-Erdene, held a meeting with Shen Minjuan, the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Mongolia, and Kang Fengwei, Deputy General Manager of the China Energy Group.

Registration now open for PDAC 2025: The World’s Premier Mineral Exploration and Mining Convention Toronto, Ontario (December 5, 2024) – The Prospectors & Developers Association of Canada (PDAC) is pleased to announce that registration for the PDAC 2025 Convention, taking place March 2-5, 2025, at the Metro Toronto Convention Centre, is now open.

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.

HOW WILL THE AMBITIOUS DEVELOPMENT BUDGET BE FINANCED? The draft budget is currently T under review in Parliament, with the final version expected to be approved next month.

Mongolian University of Science and Technology decorates its classroom with the world's heaviest meta The most abundant and heaviest metal in the world is uranium. Interesting information about this metal was provided on the wall of newly renovated room by Badrakh Energy at MUST.

NUCLEAR ENERGY LAW: CLEARING THE PATH FOR THE URANIUM INDUSTRY TO MOVE FORWARD The Nuclear Energy Law, adopted in 2009, aimed to develop Mongolia’s nuclear energy sector and enhance the exploration and extraction of radioactive minerals.

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.