AGP Executive Report

Critical Minerals & Supply Chains: Quad’s US$20bn critical minerals push is meant to loosen China’s near-monopoly on key inputs for defence, tech and clean energy, but analysts warn it will only matter if Australia, the US, India and Japan deliver measurable projects beyond declarations. Northeast Asia Diplomacy: South Korea’s Unification Minister Chung Dong-young met Mongolia’s President Khurelsukh and urged Mongolia to help restart dialogue with Pyongyang, while also floating a four-party talks idea (Seoul–Pyongyang–Washington–Beijing) that could later include Mongolia, Japan and Russia. Mongolia Tourism: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32%, with Russia, China and South Korea leading; the government is pushing year-round tourism to reach 1m visitors annually by expanding the “Years to Visit Mongolia” campaign through 2028. Mining & Industry: Rio Tinto says Oyu Tolgoi’s underground ramp-up keeps 2026 copper on track (800,000–870,000 tonnes), though local regulatory and geopolitical risks could affect expansion timelines. Energy & Growth Outlook: EBRD forecasts Mongolia and Central Asia growth at 5.6% in 2026 and 5.3% in 2027, with energy price swings, supply disruptions and sanctions risks still the big headwinds. Bilateral Trade/Industry Links: Mongolia and Germany discussed expanding cooperation across politics, trade, investment, industry, technology and consular ties, including preparations for bilateral events and follow-up on mineral resources and industry agreements.

Diplomacy & Industry Links: Belarus Ambassador Mikhail Orda presented credentials to Mongolia’s President Khurelsukh, highlighting joint projects in medicine, light industry, agriculture and mechanical engineering. Tourism Demand: Mongolia welcomed 292,063 foreign tourists in the first five months of 2026, up 32% year-on-year, with Russia, China and South Korea leading—supporting the push for year-round tourism. Mining & Energy: Rio Tinto says Oyu Tolgoi underground ramp-up keeps 2026 copper production on track (800,000–870,000 tonnes), while noting regulatory and geopolitical risks. Power Infrastructure: EBRD forecasts Mongolia and Central Asia growth at 5.6% in 2026, with services, construction and manufacturing driving momentum amid energy-price and sanctions risks. Regional Security & Green Tech: The Ulaanbaatar Dialogue opened with AI and green energy corridor themes, as South Korea’s unification minister floated four-party talks and logistics cooperation. Cross-border Payments: Tencent’s TenPay Global launched remittances to China for non-Chinese citizens via WeChat-linked services, signaling more digital trade flows. Maritime Safety: A Mongolia-flagged container ship off Istanbul left four Indian sailors stranded for months under manning rules, spotlighting vessel abandonment risks.

Oyu Tolgoi Update: Rio Tinto says Oyu Tolgoi’s underground ramp-up is on track, keeping 2026 copper guidance at 800,000–870,000 tonnes, though local regulatory and geopolitical shifts could affect expansion timing. Energy Infrastructure: State Grid Inner Mongolia reports Xiliin Gol UHV power transmission has passed 350 billion kWh, underscoring Mongolia-linked clean power delivery capacity. Mining & Gas Development: TMK Energy posts higher May gas output at Gurvantes XXXV (up 4% to 24,260 scfd) and lines up July drilling and possible workovers, while Jade Gas advances Mongolia gas commercialization with a $12m placement and new Asia-Pacific adviser. Livestock & “White Gold” Finance: Mongolia signs MNT 85bn concessional bank loans to boost wool and hides procurement for processing under the White Gold movement. Food Industry Push: President Khurelsukh visits Teso Group’s Food Revolution facilities, highlighting capacity growth, jobs, and wastewater treatment. Trade & Diplomacy: Mongolia and Germany hold consultative talks on expanding cooperation in minerals, industry, tech, and consular services. Outlook: EBRD forecasts Mongolia and Central Asia growth at 5.6% in 2026, with energy-price swings and supply disruptions as key risks.

Food & Agribusiness: President Khurelsukh visited Teso Group’s Teso Foods Park and subsidiaries under the “Food Revolution,” highlighting tripled output capacity, energy savings, and a wastewater treatment facility as Mongolia pushes to become a food-exporting country. Livestock Finance: Five banks will issue MNT 85 billion in concessional loans for wool and hides procurement under the “White Gold” movement, aiming to boost factory capacity and herder incomes. Cashmere Supply Chain: Mongolia’s “White Gold” push also reached Khanbogd Cashmere LLC, where the company expanded processing, secured concessional financing, and increased solar power use. Mining Oversight: Mongolia launched its first nationwide environmental inspection to curb irresponsible mining after a fatal borehole accident, with the State Emergency Commission warning the scale of hazardous sites is still unknown. Energy & Industry: TMK Energy reported higher May gas production at its Gurvantes XXXV pilot field and set July drilling for up to three new wells, moving closer to commercial status. Trade & Markets: Mongolia-EAEU interim trade steps are expected soon, with talks focused on exporting value-added combed cashmere, wool, and processed leather to Belarus and the wider EAEU market. Tech & Logistics: Mongolia hosted Dronecon 2026 with 52 international competitors, and the prime minister urged gradual drone adoption in mining, energy, agriculture, emergency response, infrastructure monitoring, and delivery services.

Mongolia Energy: TMK Energy says May gas output at its Gurvantes XXXV pilot field rose 4% to 24,260 scfd, despite downtime for repairs and testing, and it has set a July plan for up to three new wells plus possible workovers and a small gas-to-power push. Mining & Environment: Mongolia launched its first nationwide environmental inspection targeting irresponsible mining, sparked by a late-May tragedy involving an abandoned borehole that killed a 3-year-old. Cashmere & Manufacturing: Under the “White Gold” program, President Khurelsukh visited Khanbogd Cashmere LLC, highlighting 1,500+ tonnes of combed cashmere processed annually, a new factory expansion, and solar covering 35% of electricity demand since 2024. Trade & Markets: Mongolia’s interim trade deal with the EAEU is expected to enter into force soon, opening a path for value-added cashmere, wool, and processed leather to Belarus and the wider EAEU market. Capital Markets: Weekly Mongolian Stock Exchange trading totaled MNT 14.91bn across 11.42m securities, with major gains led by liquid bank and industrial names. Agri/Logistics: Mongolia and Kazakhstan agreed to expand agricultural and logistics cooperation, aiming to deepen cross-border trade links. Tech & Skills: Mongolia hosted Dronecon 2026, with PM Nyam-Osor urging gradual drone adoption in mining, energy, agriculture, emergency response, infrastructure monitoring, and delivery services.

Environmental Enforcement: Mongolia launched its first nationwide environmental inspection campaign to curb irresponsible mining after a fatal borehole accident in late May, with officials set to map how many hazardous unsealed holes exist. Mining & Livestock Health: Foot-and-mouth disease was confirmed in western Mongolia’s Bayan-Ulgii, leading to the culling of 602 animals and quarantine measures, with a separate outbreak also reported in Khovd. Cashmere & Manufacturing: Under the “White Gold” program, President Khurelsukh visited Khanbogd Cashmere LLC, highlighting concessional financing, equipment modernization, solar power uptake, and expanded processing capacity. Trade & Market Access: Mongolia and the EAEU interim trade deal is expected to soon enable Mongolian value-added exports to Belarus, including combed cashmere, wool, and processed leather. Capital Markets: The Mongolian Stock Exchange saw 11.42 million securities traded worth MNT 14.91 billion, with major indices closing higher and buying concentrated in liquid large- and mid-cap stocks. Drones for Industry: Mongolia hosted Dronecon 2026, urging gradual drone adoption in mining, energy, agriculture, emergency response, infrastructure monitoring, and delivery services. Regional Macro: The EBRD expects Uzbekistan’s economy to grow 6.5% in 2026, while warning that a Middle East energy shock is slowing growth across its regions.

Mongolia’s “White Gold” push: President Khurelsukh visited Khanbogd Cashmere LLC, highlighting concessional financing (MNT 65bn) and solar-backed upgrades that help the firm process 1,500 tonnes of combed cashmere and expand capacity under the national program. Drone industry & skills: Mongolia hosted Dronecon 2026 with 52 competitors, and the PM urged scaling drone use in mining, energy, agriculture, emergency response, infrastructure monitoring and delivery—while backing youth training in engineering, coding and AI. Capital markets watch: The Mongolian Stock Exchange saw 11.42m securities traded worth MNT 14.91bn, with major indices closing higher and liquidity-led gains. Trade access to Belarus: Mongolia and the EAEU interim trade deal is set to open a path for value-added cashmere, wool, and processed leather to Belarus and the wider EAEU market. Energy & heating modernization: Darkhan’s thermal network is moving toward digital monitoring and winter readiness, with a planned boost in thermal energy distribution. Livestock health risk: Foot-and-mouth disease triggered culling of 602 animals in Bayan-Ulgii and quarantine measures, with another outbreak reported in Khovd. Global industry signals: TMK Energy strengthened its Mongolian gas project team by appointing a production manager for Gurvantes XXXV. International business ties: The PM met the U.S. ambassador, stressing cooperation in education, energy, minerals, telecoms and AI, alongside school “Google Reference” plans.

Mongolia Livestock Health: Mongolia’s western Bayan-Ulgii province culled 602 animals after foot-and-mouth disease was confirmed in two soums, with quarantine and containment steps now in place; a separate outbreak was also reported in neighboring Khovd. Mongolia Energy & Heating: Darkhan’s centralized heating supply is set for improvement as the city’s thermal network uses CITECT SCADA for remote monitoring and optimization, with winter 2026–2027 preparations already underway. Mongolia Gas Development: TMK Energy strengthened its Gurvantes XXXV coal seam gas push by appointing Danny Chong as production manager, signaling a shift from pilot work toward production optimization and reservoir management. Mongolia Mining & Industry Events: WAMPEX 2026 in Accra is drawing government attention, and organizers say Mongolia will debut among exhibitors—an opening for regional mining and power supply-chain links. Mongolia Tech & Skills: MIST’s “Team Mongol Barota” placed 11th globally at the University Rover Challenge 2026, boosting Mongolia’s visibility in robotics and space engineering. China-Linked Trade & Climate Context: UN Tourism data shows international arrivals up 2% in Q1 2026, while China accelerates its low-carbon shift via green energy development.

Mongolian Energy & Heat Modernization: Mongolia’s Darkhan Thermal Network is upgrading its centralized heating supply with CITECT SCADA for remote monitoring and optimization, with 34% of winter prep work done and a digital transition policy expected soon. Gas & Upstream Momentum: TMK Energy appoints Danny Chong as production manager for its Gurvantes XXXV coal seam gas project, signaling a push from resource proving to production optimization and reservoir management. Mining Policy Overhaul: Mongolia tables Minerals Law amendments for 2026, adding a critical minerals and beneficiation plant framework, plus new rules aimed at boosting domestic processing and tightening mine-closure bonding. Renewable Transport Push: The government backs an EV “green” resolution plan targeting 50,000 registered electric cars by 2030, with plans for hundreds of charging stations in Ulaanbaatar and regions. Industrial Tech & Skills: Dronecon 2026 runs in Ulaanbaatar with UAV piloting categories and an airshow program, aiming to localize drone tech for security and agriculture. Regional Trade Context: EAEU leaders project bloc trade to top $100B in 2026 and highlight ongoing liberalization talks that include Mongolia.

Mongolia Mining Policy: Mongolia tabled sweeping Minerals Law amendments for 2026, aiming to boost domestic processing with royalty cuts, create a dedicated framework for high-tech critical minerals, and require financial bonding for mine closures—an overhaul that could reshape exploration and beneficiation rules. Mongolia Energy & Transport: The government launched a “green” EV support program targeting 50,000 registered electric cars by 2030, with plans for hundreds of charging stations in Ulaanbaatar and regions. Mongolia Agribusiness Risk: Foot-and-mouth disease was confirmed in western Mongolia’s Khovd province, triggering quarantine and containment measures as infected cattle numbers rise. Mongolia Aviation & Drones: Dronecon 2026 is underway in Ulaanbaatar alongside a public air show, pushing drone localization for national security and agriculture with international teams competing. Mongolia Resource Development: Jade Gas received approval for maiden coal bed methane reserves for its Tavan Tolgoi project, clearing a key step toward development and licensing. Regional Trade: EAEU leaders approved new trade initiatives, including free trade talks with Tunisia and updates to Serbia rules, while projecting EAEU trade to top $100B in 2026. China Supply Chain Watch: Reuters highlights China’s rare-earth talent pipeline in Baotou—specialist universities and labs feeding state-linked refining—underscoring the industrial advantage Mongolia’s mining sector will face in critical minerals competition.

Mongolia Mining Policy: Mongolia tabled sweeping Minerals Law amendments (2026) to push domestic processing, define a new framework for high-tech critical minerals, and introduce mine-closure bonding—an overhaul that could reshape exploration and beneficiation rules. EV Infrastructure Push: The government’s “green” resolution targets 50,000 registered electric cars by 2030, with plans for hundreds of charging stations in Ulaanbaatar and regions. Livestock Health Watch: Foot-and-mouth disease was confirmed in western Mongolia’s Khovd (Bulgan soum), triggering quarantine as infected cattle rise. Drone & Aviation Tech: Ulaanbaatar hosted Dronecon 2026 alongside an airshow, spotlighting UAV piloting for security and agriculture with international teams competing. EAEU Trade Momentum: Eurasian Economic Union leaders in Astana backed new trade steps, including free-trade talks with Tunisia and updates to Serbia rules, while pushing digitisation and AI-driven integration. Rare Earth Talent Race (China): A Reuters look at China’s rare-earth education and lab ecosystem shows how Beijing sustains its edge in refined critical minerals—relevant to Mongolia’s own critical-minerals ambitions. Energy Storage Recognition: JDEnergy was named BloombergNEF Tier 1 energy storage manufacturer for a fifth straight quarter, underscoring continued clean-energy equipment demand.

Mongolia Mining Policy: Mongolia tabled sweeping 2026 amendments to its Minerals Law, aiming to boost domestic processing with royalty cuts, create a first legal framework for high-tech critical minerals, and require financial bonding for mine closures—an overhaul that could reshape exploration and beneficiation rules. EV Push in Ulaanbaatar: The government launched a “green” resolution program to cut fossil fuel dependence, targeting 50,000 registered electric cars by 2030 and planning hundreds of charging stations across the capital and regions. Drone & Aviation Skills: Dronecon 2026 is underway at Buyant-Ukhaa Airport, with international teams competing in professional, amateur, gaming, and self-assembled drone categories, while a parallel air show promotes aviation cooperation and practical drone use in agriculture and security. Livestock Health Alert: Foot-and-mouth disease was confirmed in western Mongolia’s Khovd province, triggering quarantine and containment around infected cattle. Mining Safety Fallout: A three-year-old died after falling into an unsealed borehole at a central Mongolia mining area; authorities ordered revocation of the drilling company’s license over rehabilitation failures. EAEU Trade Momentum: EAEU leaders in Astana backed new trade initiatives, including free trade talks with Tunisia and updates to Serbia customs rules, while highlighting intensified liberalisation talks with India.

Livestock Health Watch: Foot-and-mouth disease has been confirmed in western Mongolia’s Khovd province, with a quarantine imposed after lab tests found infections in Bulgan soum. Mining Safety & Accountability: A three-year-old girl was recovered after falling into an unsealed 30-meter borehole at a mining area in Tuv; the PM ordered the drilling company’s license revoked over poor rehabilitation and site security. Green Transport Push in Ulaanbaatar: Mongolia’s “Green” resolution is moving ahead with plans for about 500 EV charging “green stations” over two years, including 80 locations in the capital and 30 in rural areas this year. EAEU Trade & Digital Integration: Eurasian Economic Union leaders in Astana backed new trade initiatives (including free trade talks with Tunisia) and emphasized AI-driven integration and digitisation to reduce fragmentation. Agri-Trade Cooperation: Kazakhstan and Mongolia agreed to expand agricultural trade, logistics, and veterinary/phytosanitary cooperation, with early 2026 mutual trade up 10%. Energy & Industry Context: China’s coal power and pollution fell for the first time in a decade, but grid curtailment still wastes clean electricity—an issue that matters for regional energy planning.

Mongolia Mining Safety: A 3-year-old girl was recovered after nearly 60 hours following a fall into an abandoned 30-meter borehole in Zaamar soum, Tuv; authorities say the site was left unsealed and Prime Minister Nyam-Osor ordered the drilling company’s license revoked. EAEU Trade & Digital Push: At the Astana summit, EAEU leaders backed deeper integration via digitisation and AI, while Putin said trade liberalisation talks with India have intensified and new free-trade work is moving with partners including Tunisia and Mongolia. EAEU–Mongolia Customs Deal: An interim EAEU–Mongolia trade agreement is set to take effect July 22, cutting or zeroing duties on 367 commodity subheadings for three years. Livestock Outlook: Mongolia’s spring birthing season is at 76% completion, with newborn survival around 99%, supporting the agriculture base of the mining-dependent economy. Green Transport in Ulaanbaatar: The government-backed “Green” plan targets EV infrastructure, with 500 charging “green stations” planned over two years (40 before COP17). Agri Trade Talks: Mongolia and Kazakhstan agreed to expand agricultural and logistics cooperation, including grain, flour, oil, and veterinary/phytosanitary coordination. Forestry & Green Finance: A Mongolia forestry sector forum focused on green financing products and a revised draft Forests law to attract long-term investment. Energy–Mining Link: Lithium price recovery is prompting miners to restart and expand, while AI-driven data center power demand keeps pressure on energy and metals supply chains.

EAEU Trade Momentum: Putin said trade liberalisation talks with India have intensified, as the bloc pushes deeper market access and integration. EAEU–Mongolia Customs Step: The interim trade deal between the EAEU and Mongolia is set to start on July 22, cutting customs duties on 367 commodity lines. Agriculture & Food Security: Mongolia’s spring livestock birthing is at 76% completed, with newborn survival around 99%, while EAEU leaders also backed a common seed market and customs harmonisation. Green Transition in Ulaanbaatar: Mongolia’s “Green” push includes building EV “green stations” at 80 locations in the capital and 30 in rural areas this year, targeting 50,000 EVs by 2030. Forestry Financing: A Mongolia forum on forestry sector and green financing focused on attracting long-term investment via new green finance products and insurance mechanisms. Mining & Lithium Watch: Lithium price recovery is reviving expansion plans, but analysts warn the market could swing back to surplus next year. Corporate Restructuring: Mongolia approved reorganising Erdenes Mongol into the Chinggis Khaan National Wealth Fund Corporation to professionalise state asset management. Capital Markets: Mongolia hosted the inaugural Mongolia Investment Forum in Shanghai to mobilise long-term capital for priority sectors.

AI-Energy Nexus in Mining: A new “Power List” argues AI demand is reshaping commodity values, with hyperscale data centers driving a surge in clean baseload power needs and boosting miners exposed to copper, uranium and lithium. China-Russia Energy Talks: Putin left Beijing after a two-day Xi meeting with dozens of deals, but without approval for the Power of Siberia 2 pipeline—leaving Moscow short on the headline energy win it sought. Mongolia Trade Boost: The EAEU–Mongolia interim trade pact is set to take effect July 22, cutting or zeroing customs duties on 367 commodity subheadings for three years. Mongolia’s Green Finance Push: Mongolia reports MNT 2.54T in green loans in Q1 2026 (5.7% of total lending), with energy-efficient projects the biggest share and a goal to reach 10% by 2030. State Asset Restructuring: Mongolia approved reorganizing Erdenes Mongol into the Chinggis Khaan National Wealth Fund Corporation to shift toward professional financial management and reduce costs. Poverty Reduction Cooperation: Mongolia and China discussed rural development and poverty reduction cooperation in Beijing, including sustainable land management and livelihood support. Mining Safety Watch: A deadly Chinese coal mine gas disaster is expected to ripple into steel, power and chemicals, with short-term output curbs and safety crackdowns.