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In today’s newsletter:

• 🤝 Mongolia-Japan Housing Cooperation 

• 🚷 Gobi Plans Privatization

• 💥 Coal Exports Decline, But Shipmet…

No Time to Waste. Let’s Get Started! 🦘

MARKET

MNG: The President issued a partial veto on the parliamentary resolution to implement the “Gold-3” campaign, citing the need to expand strictly protected areas and ensure compliance with the Constitution.

SIN: MIAT to launch Ulaanbaatar–Singapore flights twice weekly starting November 2025.

JPN: Mongolian Mortgage Corporation and Japan Housing Finance Agency sign cooperation agreement.

👀 Gobi Mulls Privatization Following Scandal

Mongolian cashmere giant Gobi (GOV) mulls going private after 18 years, with a special shareholders' meeting set for September 8.

What happened?

In July, Gobi's CEO B.Amarsaikhan became the subject of public attention following reports of an altercation involving the sons of a Erel Group founder and former Member of Parliament Ts.Tserenpuntsag. The incident reportedly occurred while the parties were under the influence of alcohol and drugs, resulting in serious injuries to the victim. Before law enforcement could proceed with an investigation, $GOV’s CEO fled to South Korea. Although he was expected to return to Mongolia on July 27, he did not do so and has since left South Korea for another country. 

• ⏰ The timing of Gobi's move to convene a shareholders’ meeting, without addressing the leadership crisis, has only intensified public backlash.

💥 The Bigger Picture

Currently, Tavan Bogd Holdings LLC holds a dominant 87.3% stake in Gobi, with 12.6% owned by minority shareholders and just 0.1% held by employees. Notably, $GOV has not issued any dividends since its last payout of ₮6.8 per share in 2018. Over the past 5 years, 6 companies have voluntarily delisted from the Mongolian Stock Exchange (MSE) to become private entities. Among them are Mon Beef and Juulchin Duty Free, both subsidiaries of Tavan Bogd Group, which exited the exchange almost simultaneously in the fall of 2023.

• 🙊 What if? If Gobi follows the same path, only Khan Bank (KHAN) would remain publicly traded from the Tavan Bogd Group portfolio.

Even though Gobi's CEO scandal has drawn the most public attention, many argue that Mongolia’s current regulatory environment places more burden than benefit on publicly listed companies. In the context of an evolving capital market, this underscores the urgent need for stronger incentives to keep companies public, while also ensuring better protection of retail shareholders’ rights.

⭐ Selected for you

ECONOMY & BUSINESS

• The Largest Land Port on the China-Mongolia Border, Recorded a Milestone of 20,000 Entry and Exit China-Europe Freight Trains. (XinhuaNews)

• The Government Begins a Two-Week Public Consultation to Gather Citizens' Input on Next Year's Budget. (GOV)

• Russia's Rosatom Negotiating Construction of New Facilities Abroad. (Interfax)

POLITICS

• Indonesian Judges Delegation to the Open World Judicial Exchange In Mongolia. (Dandapala)

• Fifth Mongolia-China Expo to be held late August in Hohhot. (Kazinform)

• Mongolia and Kazakhstan Discuss Developing Inter-Parliamentary Cooperation. (AKIPress)

• Transport Delays, Bureaucratic Inefficiencies at Mongolia’s Border Crossings ‘Seriously’ Hindering Economic Activity. (AsiaNews) 

• Mongolia’s New Challenge: Illegal Drugs. (TheDiplomat)

CULTURE & LIFESTYLE

• Traditional Mongolian Throat Singing Echoes Across Generations. (CityNewsService)

• The Sacred and Profane Dogs of Mongolia. (JSTORDaily)

• Mongolia Becoming “Testing Ground” for China’s Control Over Buddhist Reincarnation, Warns Dalai Lama Envoy. (Phayul)

🚚 Coal Shipments Up, Revenues Down

Mongolian coal shipments to China’s key border port of Gantsmod have remained strong recently, as port-based trading houses accelerate imports to meet this year’s border crossing targets.

🧳 Shipment Surge

Coal truck traffic into Gantsmod port averaged over 1,200 units per day between July 28-31, marking a 26.6% increase from the same period in June and a 6.1% rise compared to last year. Deliveries to Gantsmod are expected to stay elevated through August.

• 👀 How is the Export? Mongolia’s total exports in H1 2025 fell by $1.3 billion year-on-year to $6.6 billion. This decline was primarily driven by a $2.1 billion drop in coal exports, highlighting coal’s critical role, it accounts for 38.9% of Mongolia’s total export value.

• ☝🏻 In H1 2024, Mongolia exported 39.4 million tonnes of hard coal worth approximately $4.68 billion. In the same period of 2025, exports dropped sharply to 35.1 million tonnes, valued at about $2.1 billion, a volume decline of 4.3 million tonnes (11%) and a revenue plunge of $2.6 billion (55%).

🚷 Prices Take a Hit, Impacting Revenues

Coal prices fell from roughly $103 per tonne in 2024 to about $99–$100 per tonne in early 2025, a 20%–27% drop. This price decline has severely hit export revenues, resulting in over $2 billion less earnings compared to the previous year’s first half. Coal plays a critical role in Mongolia’s economy, representing nearly 39% of export earnings. This makes any price or volume decline a significant challenge. The ongoing market slump is testing Mongolia’s trade balance and budget revenues.

Looking Ahead… While shipments remain steady, persistent pressure from falling prices and global demand volatility is expected to continue. In 2024, Mongolia set a record by exporting 83.7 million tonnes of coal. However, due to this year’s global market downturn, coal exports are projected to weaken significantly. Global market fluctuations are inevitable, but authorities must manage fiscal budgets prudently to avoid setting overly optimistic revenue targets.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.