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Happy Monday, folks! In case you missed it, we’ve got the PM’s insightful interview on uranium, Putin’s visit, and the future of U.S.-Mongolia relations all in one place! Catch up with the full interview HERE and stay informed!

Today’s highlights in 3 sentences:

• 💸 Banks report ₮1.7 trillion in profit

• 🌞 If Only Mongolians Could Go Solar

• 🔚 Is $RIO finally settling with Mongolia?

Buckle Up!

MARKET

• OTC: The Governor’s Office of the Capital City of Mongolia (MUB) issues its first OTC market bond through a private placement to the International Finance Corporation.

• MNG: Mongolia and EBRD to construct 300MW of solar power facilities and 200MW of wind power plants with energy storage by 2028.

• BANKS: Mongolian TOP-6 banks report a net profit of ₮1.7 trillion in 2024.

 🌞 Embracing the “If Only I Could Go Solar” Initiative

In Mongolia, the harsh winter is a season and a battle for survival. The reality depicted in the film If Only I Could Hibernate sheds light on the struggles of Ger district residents, who are forced to endure temperatures as low as minus 45°C. 

• How serious is it? Each year, 300 Mongolians die from air pollution-related illnesses, including 240 children under 5. On the coldest winter days, Ulaanbaatar's PM2.5 levels soar to an alarming 687 micrograms per cubic meter, 27 times above the World Health Organization's recommended safe limit.

🤔 Does Mongolia Have Sunny Potential? 

Mongolia enjoys 250 sunny days per year, making it an ideal place to harness solar power. In response to this opportunity, UNDP Mongolia’s Accelerator Lab (A-Lab) launches the “If Only I Could Go Solar” crowdfunding campaign. The goal is to raise funds to transition from coal to solar power by installing solar panels to power electric heaters in 20 households. Once noted, in 2024, UNDP Mongolia and the Mongolian and French governments are expected to expand the program to 100 households.

• 👆 The initiative aims to raise $60,000 but currently stands at $1,340. Here we are leaving the donation link, super easy for you to jump in!

🔦 Shining a Light on the Energy Landscape

Mongolia is rich in solar and wind energy resources, yet renewable energy currently accounts for only 9% of total electricity generation. Of this, 6.2% comes from wind, 2.3% from solar, and 0.5% from hydro. However, significant progress is underway. 9 solar energy projects are being implemented across the country, with a total investment of $169 million. One of the latest, launched in 2023 by MCS International, includes the Borkh and Serven projects, which are backed by an $18 million investment from the Asian Development Bank.

• ➕ In addition, the Mongolian government and the European Bank for Reconstruction and Development (EBRD) announce plans to build a 300 MW solar power plant by 2028, during the Davos annual meeting.

🛣️ The Path Forward

Although progress continues, challenges remain. Major hydropower projects, like the 90 MW Erdeneburen and 315 MW Egiin Gol Hydropower Plants, stall for over a decade, with no clear resolution in sight. Despite government promises, the future of these projects stays uncertain.

The solution lies in embracing renewable energy particularly solar power, which could transform the lives of Ger District residents. “If Only I Could Hibernate” reflects the harsh reality of Mongolia’s winters, but with collective action, initiatives like “If Only I Could Go Solar” offer a cleaner, brighter future.

☝️ 7 Could Be Lucky Number for Oyu Tolgoi Project

The 7-year tax dispute between Mongolia and Rio Tinto (RIO) nears resolution. Rio Tinto offers a $472 million settlement to address the disagreement, potentially bringing closure to one of Mongolia's most high-profile financial disputes.

❓❗ How It Begins

The dispute starts in 2016 due to differing interpretations of Mongolia’s revised 2009 tax laws, coinciding with the signing of the Oyu Tolgoi investment agreement. Rio Tinto argues that all provisions of the law apply to the Oyu Tolgoi project, while the Mongolian government maintains that only the tax rates are stabilized, excluding other procedural tax laws. The disagreement escalates, leading Oyu Tolgoi to file a case with the London Court of International Arbitration in 2020. In response, the Government of Mongolia files a counterclaim. The case remains on hold since December 2023.

• During the pandemic, the Mongolian government collects ₮1 trillion in disputed taxes from Rio Tinto and distributes ₮350,000 to each citizen.

🤔 Why Rio Tinto Ready to Settle?

Rio Tinto, which holds a 66% stake in Oyu Tolgoi, proposes settling the dispute without seeking a refund of the ₮1 trillion previously paid. The company makes it clear that it will neither request refunds nor pay additional taxes. Negotiations continue between the two parties, with Rio Tinto emphasizing its commitment to a long-term, cooperative partnership with Mongolia.

Oyu Tolgoi remains a crucial project for Rio Tinto. In 2024, the company’s copper production rises to 697,000 tons, driven by a 28% increase in output from the Oyu Tolgoi underground mine, which reaches 141,900 tons. For Mongolia, Oyu Tolgoi is equally vital. Since 2010, Rio Tinto invests $15 billion in the project and pays $4.1 billion in taxes. However, the ongoing tax dispute negatively impacts the global reputations of both parties.

🔮 What’s Next?

By proposing this settlement offer, Rio Tinto takes a significant step toward safeguarding its reputation, securing the future of the Oyu Tolgoi project, and strengthening its partnership with Mongolia. While the number seven is often considered unlucky in Mongolian culture, resolving this seven-year dispute turns it into a symbol of good fortune for both sides, potentially improving their global image and contributing to the long-term stability of the Oyu Tolgoi project.

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ECONOMY & BUSINESS

• Troy Minerals eyes high-purity silica production in Mongolia in 2025. (InvestingNews)

• China May Seek More Coal From Mongolia as Russia’s Share Shrinks. (Bloomberg)

• TMK Energy Reports on Quarterly Activities. (TMKEnergy)

• SouthGobi Resources Announces Update on Mongolia Tax Audit Resolution. (Tiprank)

• Mongolia Launches Lab to Produce Virus-Free Potato Microtubers for Seed Enhancement. (AKIPress)

• Meet the Woman Bringing AI to Mongolia’s Nomadic Herders. (CNN)

POLITICS

• Mongolia Says Close to Signing Major Green Energy Eeals with Saudi Arabia. (Reuters)

• Mongolian Government Should Take Action Toward Eliminating Pollution. (NorthernStar)

• Mongolia Approves Quotas for the Import of Livestock and Breeding Products. (Oreanda)

 CULTURE & LIFESTYLE

• East Asia Super League Marks a Big Milestone as Mongolia Joins Showpiece. (ChinaDaily)

• Mixed 10m Air Rifle Gold Goes to Hungary’s Pekler and Mongolia’s Erdenechuluun. (Olympics)

• Mongolian team wins 2025 World Snow Sculpting Championship in Stillwater. (TwinCities)

• Movie week of China's Qinghai opens in Mongolia. (ChinaDaily)

• Scientists Explore Turkic Heritage in Mongolia. (DailyNews)

• A Visual Resistance: Carmel Professor Among World’s Leading Experts in Mongolian Art. (Current)

• Bigger than T-rex? Largest Duck-Billed Dinosaur Footprints Ever Discovered in Mongolia. (InterestingEngineering)

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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.