👀 Mongolia Proposes Drug Crisis Hearing

Mongolia Bets on Gobi Power to Replace Imports

September 28, 2026 • Estimated Reading Time: 3 minutes

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Good Morning! Last Saturday Abu Dhabi hosted its first international professional sumo competition, and Mongolian wrestler Jaagii took the title at the All-Star Sumo Elite Competition. And this is hardly new. Mongolians have been dominating Japanese sumo for years, winning 64 of 68 top-division championships from 2004 to 2014. Apparently, Abu Dhabi was next. 😎

What’s inside today’s edition…

  • 🪢 Gobi JSC Will Remain Public

  • 👀 Mongolia Proposes Drug Crisis Hearing 

  • 🏜️🌵 Mongolia Bets on Gobi Power to Replace Imports

We’ve got a lot to cover, so let’s get moving. 🐐

MSE: Gobi JSC has decided to remain publicly listed, aiming to expand access to international financing, strengthen corporate governance and transparency.

MNG: Private sector loans now account for 40% of Mongolia’s total outstanding loans, meaning ₮4 out of every ₮10 in credit goes to private businesses.

JPN: Japan to lend Mongolia ¥150 billion for airport expansion. 

👀 Mongolia Proposes Drug Crisis Hearing 

Last week, Member of Parliament B.Bayarbaatar announced an initiative to hold a parliamentary hearing on issues related to the demand and supply of narcotic and psychoactive substances. The move raises the question of how serious the issue has become for Mongolia to warrant an open discussion at the state level.

⚠️ How Serious is the Situation?

While comprehensive official figures are not yet available, some studies estimate that 75,000-100,000 people have been affected by drug use. If each user places another 4-10 people at risk, the indirect impact could extend to a significant share of the population.

  • 🫪 The Scale is Concentrated Among Young People! From 2017 to 2025, 2,100 drug related crimes were recorded, involving 2,422 people. More than 86% of those involved were aged 18-35, while 83.3% of cases were recorded in Ulaanbaatar.

🚨 From Transit to Consumption

Mongolia imposes prison sentences for drug related crimes, with penalties varying depending on the offense and circumstances. Yet repeat offending remains a concern, of the 1,117 people imprisoned for drug related crimes over the past 9 years, 39.9% had previously been convicted of drug related or other crimes. Once primarily viewed as a transit country, Mongolia is increasingly becoming a destination for drug consumption.

🏛️ What Could the Hearing Address?

The hearing is expected to focus on the rapid spread of drug use among young people, the influence of international trafficking networks, gaps in the legal framework, and weaknesses in treatment and prevention systems. The initiative aims to bring these issues into open discussion and develop concrete policy responses.

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🏜️🌵 Mongolia Bets on Gobi Power to Replace Imports

Mongolia has awarded a 530 MW renewable energy project in the Gobi through a competitive auction, a move aimed at reducing Oyu Tolgoi’s dependence on imported electricity.

  • 🧩 Current Situation: Oyu Tolgoi currently imports around 1.6 billion kWh of electricity annually from Inner Mongolia, costing an estimated $120-$140 million a year. Imports are projected to rise to 1.87-2 billion kWh annually by 2027–2030, while the current supply agreement expires in 2030.

⛈️ The Auction

The Ministry of Energy held the auction on September 24, with 10 companies initially expressing interest. Two consortiums met the qualification requirements and submitted deposits. The auction started at 9.7¢ per kWh, with a consortium of Net Zero Tech, MCS International and Inner Mongolia Energy International Cooperation winning at 7.9¢ per kWh. The tariff is 24% below the current import price.

📍 What Will Be Built?

The winning consortium will develop 260 MW connected to the Oyu Tolgoi substation and 270 MW connected to the Zes-Oyu substation, for a combined capacity of 530 MW. The project will combine solar and wind generation and must meet a 99.5% reliability requirement for the two mining operations. Unlike a simple lowest-price bid, the auction also evaluated the technical solution needed to provide stable power to the mines.

  • 👉🏻 The project requires no state budget funding, while replacing imported electricity with domestic generation could reduce foreign-currency outflows and add new renewable capacity to Mongolia’s grid.

🔁 The Second Renewable Energy Auction

The project is Mongolia’s second renewable energy auction. The first, held in June, awarded projects totaling 220 MW of solar capacity and a 135 MW/440 MWh battery energy storage system across five provinces.

Overall… Mongolia is using competitive auctions to bring down renewable power costs and reduce its reliance on imported electricity. The key test is now execution: can the 7.9¢-per-kWh project be built and commissioned before Oyu Tolgoi’s import agreement expires in 2030?

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

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