Mongolian government to support gold mining as coal export prices decline

In response to the decline in coal export prices, the Mongolian government has decided to support the gold mining sector by re-issuing exploration licenses, effective March 1, 2025. This initiative aims to boost production as demand for gold and its price growth are expected to persist throughout the year.

In the first two months of 2025, the average border price of unprocessed or semi-processed gold was 1,900.2 USD per ounce, marking a significant increase of 632.3 USD per ounce compared to the same period in the previous year. No other precious metal has experienced such a sharp price increase.

The Bank of Mongolia reported purchasing 645.1 kg of precious metals in February 2025, bringing the total to 1.9 tons since the beginning of the year. This represents a 15.1 percent decrease compared to the same period in 2024. The reasons behind the decline in gold production are currently being analyzed, and measures will be implemented to address the issue.

The Bank of Mongolia sets its purchase price for precious metals based on the world market price. In February 2025, the average purchase price for gold was 321,506.03 MNT per gram. Ninety-nine percent of the gold purchased is exported to Switzerland.