Recent news
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.
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.
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.
