During a Cabinet meeting held on 28 January, the Chief of the Cabinet Secretariat, S. Byambatsogt, presented to Cabinet members an update on the progress of work conducted by the sub-working group responsible for evaluating proposals submitted by companies that have expressed interest in investing in and partnering on the Copper Concentrate Smelting and Processing Plant project to be implemented based on Erdenet Mining Corporation, a state-owned enterprise.

In September of last year, pursuant to an order of the Prime Minister, a Working Group was established to accelerate the implementation of the project to construct a copper concentrate smelting and processing plant at Erdenet Mining Corporation. The Working Group is chaired by S. Byambatsogt, Chief of the Cabinet Secretariat.

General information regarding the project was disseminated to 55 companies from more than 20 countries. To date, 13 companies from seven countries have officially expressed their interest in investing in and cooperating on the project.

To identify the most qualified investor and contractor, the sub-working group conducted an evaluation of the submitted proposals, taking into consideration the companies’ experience in implementing similar projects, proposed technical and technological solutions, financial and economic capacity, and comparative advantages.

The companies currently under consideration include:

• NFC (People’s Republic of China)
• Jiangxi Copper (People’s Republic of China)
• A consortium comprising Liantou New Energy Technology, China ENFI Engineering Corporation, and Shanxi Northern Copper Industry (People’s Republic of China)
• Glencore International AG (Swiss Confederation).

Preparatory work is underway to complete the final stage of the selection process for the investor and contractor for the Copper Concentrate Smelting and Processing Plant project within the first quarter of 2026.

Preparatory Work for Launching Direct Flights Between Mongolia and the United States Is Ongoing

At the Cabinet meeting held on 28 January, the Government discussed the progress of preparatory work for launching direct flights between Mongolia and the United States of America.

In 2023, the Governments of Mongolia and the United States concluded an Air Transport Agreement, thereby establishing the legal framework for operating direct flights between the two countries.

From the Mongolian side, to commence direct flights, it is required to undergo the International Aviation Safety Assessment (IASA) conducted by the U.S. Federal Aviation Administration, as well as a security assessment by the Transportation Security Administration. As part of the preparatory work for launching direct flights, the Civil Aviation Authority of Mongolia announced a selection process and, in 2024, entered into a consultancy agreement with the U.S.-based company The Wicks Group Consulting to obtain professional guidance for the IASA assessment.

Mongolian civil aviation sector organizations are currently implementing the recommendations provided through the consultancy services. To fully complete preparations for the IASA assessment, discussions have been held regarding the financing of the second phase of consultancy services through the United States Trade and Development Agency.

It is planned that a grant agreement will be concluded soon between the Government of the United States and USTDA, and the Government of Mongolia and the Civil Aviation Authority of Mongolia.

S&P Global Ratings has upgraded Mongolia’s sovereign credit rating from “B+ (positive)” to “BB- (stable)”, the country’s strongest rating in 13 years.

The upgrade reflects improved fiscal discipline, debt management, and sustained economic growth. Since taking office, Prime Minister G.Zandanshatar has amended the 2025 budget, cutting spending by MNT 2.2 trillion and reducing the fiscal deficit. The government also boosted coal exports and foreign currency inflows, helping foreign reserves reach a historic high.

S&P highlighted Mongolia’s strengthened budget performance driven by mining exports, a declining debt-to-GDP ratio, and expectations of continued steady growth with a relatively low deficit over the next one to two years. The agency also expects consistent policy implementation despite domestic political developments.

The move follows other positive ratings actions in 2025: Fitch affirmed Mongolia at “B+, Stable”, and Moody’s upgraded the country to “B1, Stable.” This is S&P’s second upgrade for Mongolia in two years.

The higher rating is expected to reduce Mongolia’s external borrowing costs, strengthen the credit outlook for banks and businesses, and boost investor confidence.

Prime Minister G.Zandanshatar has established a Special Working Group to combat corruption and theft in the mining sector and state-owned companies. The group includes representatives from the General Intelligence Directorate, the Independent Authority Against Corruption, the National Police Agency, the General Customs Administration, the Mongolian Tax Administration, and all ministries.

The working group will review and provide recommendations on a draft law aimed at identifying the causes of corruption and official misconduct and strengthening the legal framework.

The Prime Minister instructed the group to focus on developing laws on whistleblower protection and enhancing the national system for witnesses and victims. He also highlighted the importance of amending the Law on State and Official Secrets, ensuring contract transparency, and establishing public oversight.