Prime Minister G.Zandanshatar has instructed the Mineral Resources and Petroleum Authority to revoke the exploration license of Tugrug Nuur Energy LLC, the holder of the Tugrugnuur coal deposit in Bayan soum, Tuv aimag, citing violations under Article 56.1.8 of the Minerals Law.

Although the company completed a feasibility study and defined production capacity, it failed to submit the required applications and sign agreements within the legal timeframe. The Prime Minister also tasked Industry and Mineral Resources Minister G.Damdinnyam with preparing a proposal to designate Tugrugnuur as a strategically important deposit and submit it to the Cabinet by September 2025.

The Tugrugnuur deposit, spanning 20–30 square kilometers, is considered one of Mongolia’s largest coal reserves, with studies estimating up to 3 billion tons of lignite. The site was initially explored between 1951 and 1986 using state funds. The Independent Authority Against Corruption is investigating allegations that a former Member of Parliament abused his position to obtain the license before selling the company to a foreign-invested entity for profit, possibly involving money laundering.

Prime Minister G.Zandanshatar stressed the deposit’s national importance as a funding source for the Future Heritage Fund and National Sovereign Wealth Fund. He called for transferring revoked licenses to national enterprises, expediting development, and ensuring the deposit’s benefits are directed toward public wealth.

Highlights from the Cabinet Meeting on April 23

Construction of the Gashuunsukhait–Gantsmod Cross-Border Railway Scheduled to Commence on May 14

Minister of Road and Transport Development B. Delgersaikhan presented updates on the progress of the Gashuunsukhait-Gantsmod cross-border railway construction during the Cabinet meeting. Following the presentation, Prime Minister Luvsannamsrain Oyun-Erdene instructed relevant authorities to begin construction by May 14, 2025, and to develop a comprehensive implementation plan.

The Prime Minister also emphasized the importance of ensuring smooth passage for necessary equipment, construction materials, and daily supplies across the border. He stressed the need for close coordination with Chinese counterparts to facilitate efficient project execution.

The Government’s 2024–2028 Action Program outlines the implementation of 14 major projects across four key policy areas. Among these initiatives is the construction of cross-border railways and cargo transshipment terminals at the Gashuunsukhait–Gantsmod, Khangi–Mandal, and Shiveekhuren–Sekhe border crossings. These projects are expected to boost Mongolia’s total export capacity while enhancing passenger and freight transport capabilities.

Additionally, the project will stimulate trade, economic growth, and regional cooperation, particularly in the mineral resources, industrial, and infrastructure sectors between Mongolia and China. It will also pave the way for further railway connections at the Shiveekhuren–Sekhe, Khangi–Mandal, and Bichigt–Zuunkhatavch ports. By 2030, Mongolia’s border crossing capacity is projected to increase by 80 million tons, underscoring the project’s strategic significance.

Relevant Authorities Instructed to Take Measures in Response to Measles Outbreak

During the meeting, the Cabinet instructed Minister of Health T. Munkhsaikhan to ensure preparedness for the ongoing measles outbreak by securing necessary medicines, medical equipment, diagnostic tools, and vaccines. The Minister was also tasked with strengthening human resource readiness and developing a comprehensive immunization policy.

Minister of Education P. Naranbayar and Minister of Labor and Social Protection L. Enkh-Amgalan were directed to monitor vaccination coverage among children in schools and kindergartens in cooperation with health organizations, while improving hygiene conditions in educational institutions.

Additionally, relevant officials were instructed to identify necessary funding for measles surveillance, vaccination efforts, and outbreak response measures. This includes providing support to healthcare institutions at all levels and increasing national immunization coverage.

Four Agencies Under Capital City Administration Dissolved

To eliminate duplication of state functions, reduce administrative hierarchy, and improve budget efficiency, the Cabinet decided to dissolve the following four agencies under the Governor of the Capital City:

–       Department of Youth Development

–       State Registration Department of the Capital City

–       Department of Child, Family Development and Protection

–       Department of Labor and Welfare

Additional Funding to Be Raised for Cashmere Purchases; Promissory Notes to Be Issued

In an effort to stabilize herders’ incomes and boost domestic production, the government has decided to issue promissory notes to secure additional funding for nationwide cashmere purchases by domestic producers in 2025.

Under the framework of the “White Gold” initiative, led by the President of Mongolia, over 30 companies have received loans totaling MNT 230 billion for cashmere purchases in 2025. To date, 1,977 tons of cashmere have been acquired from herders. Domestic processing plants plan to export 3,500 tons of combed cashmere this year, produce 2.5 million finished products, and increase sales revenue by MNT 600–700 billion, bringing the sector’s total revenue to approximately MNT 1.8 trillion.

To maintain steady production operations and safeguard herders’ cash incomes, it is necessary to purchase 5,600 tons of cashmere. The issuance of promissory notes is expected to address this need, ensuring continuous production and protecting the industry’s competitiveness in the global market.

The government aims to further develop Mongolia’s wool and cashmere industry by increasing processing capacity, promoting value-added production, and boosting export revenues through the full domestic processing of non-mining exports.

Highlights from the Cabinet meeting on April 16

Emphasis placed on increasing coal exports

During its regular meeting, the Cabinet instructed Cabinet member and Chair of the National Committee on Port Recovery B. Tulga, Minister of Road and Transport B. Delgersaikhan, and other relevant officials to promptly facilitate the export of coal purchased by enterprises that have signed long-term agreements with Erdenes Tavantolgoi JSC, through a designated special border gate. The management of Erdenes Tavantolgoi JSC was also tasked with preparing coal for sale under these agreements, increasing production, and ensuring smooth and timely shipments.

Due to falling coal prices and market uncertainty, the coal loading and unloading area at Mongolia’s main export port, Gashuunsukhait–Gantsmod, has become congested, slowing down coal exports.

In the first quarter of this year, Mongolia exported 17.5 million tons of coal, a decrease of 3.3 percent compared to the same period last year. The drop in coal prices has also negatively impacted trading on the mining products exchange. Erdenes Tavantolgoi JSC conducted 47 trades on the exchange during the first quarter, with only 12 successful transactions and 35 unsuccessful ones.

In response, the Cabinet approved a resolution to ensure that coal sold under long-term agreements passes through a designated special border gate without delay.

Mongolia’s foreign currency reserves reach USD 5.2 billion

Finance Minister B. Javkhlan delivered an update on the current state of mining exports and foreign currency reserves.

Export earnings totaled USD 278 million for the week, a 17 percent increase from the previous week, primarily driven by a 25 percent rise in coal exports to 1.9 million tons.

Despite ongoing coal stockpiles at the Gashuunsukhait border port, exports to the People’s Republic of China increased during the past week and are expected to continue rising. At the same time, the Shiveekhuren border port reported coal exports of 758,000 tons last week – its highest weekly figure so far this year.

The Mongolian mining product exchange also recorded its highest weekly coal trading volume of the year, with 480,000 tons traded. Exports of other mining products are also on the rise. Copper concentrate exports increased by 2 percent to 42,000 tons, while iron ore exports rose 14 percent to 177,000 tons.

As of April 15, 2025, Mongolia’s foreign currency reserves stood at USD 5.2 billion, reflecting an increase of more than USD 230 million from the previous week. To further strengthen foreign currency inflows, the Minister of Finance outlined additional measures to be implemented.

Cabinet approves development plans for the Khangai region

As part of Mongolia’s Regional Development Policy, an expanded meeting of the Khangai Regional Council was held on April 14, 2025, in Arkhangai Province. Based on the recommendations adopted at the meeting, the Cabinet made the following decisions:

1. Accelerating development in the Khangai region:

Launch the Thermal Power Plant Project in Arkhangai Province with concessional financing from the Export-Import Bank of the Republic of Korea and resolve stagnation in the Thermal Power Plant Projects in Bayankhongor and Uvurkhangai provinces;
Conduct a detailed environmental impact assessment for the Baidrag Hydropower Plant Project;
Implement 10 MW solar power plants and 20 MWh battery storage systems in each province of the region through public-private partnerships by 2026;
Assess and secure financing for the development of feasibility studies for regional road projects;
Construct and develop infrastructure such as water supply and wastewater treatment systems at key tourism destinations in the region;
Support the processing of animal-based raw materials, and promote agriculture, food production, and related services.
2. Developing the Khangai region as a specialized tourism area:

Develop and implement a regional tourism development plan with the involvement of non-governmental organizations and professional associations;
Study and draft legislation related to land allocation for tourism services to citizens, businesses, and organizations;
Review and resolve funding issues for the Museum of History, Ethnography, and Natural History in Bayankhongor Province and the construction of the Orkhon Valley World Heritage Site Protection Administration building in Kharkhorin soum, Uvurkhangai Province.
In connection with the upcoming 390th birth anniversary of Undur Gegeen Zanabazar – a prominent figure in Mongolia’s statehood, religious, and cultural history – to be commemorated in 2025, the necessary funding will be allocated from the Government Reserve Fund.