POWERED BY

Happy Monday! 🎥 Free Documentary explores the 'Most Dangerous Ways to School,' and yes, Mongolia makes the cut. Who needs an alarm clock when -40°C blizzards and miles of frozen landscape do the job? ❄️ Watch as kids in remote countryside trek through brutal winters just to get to class.

Today’s highlights in 3 sentences…

• 🏙️ First model "20-Minute City"

• 🤝 $ION Secures $13.5M Deal

• 🪽 Mongolia Frees Coal Pricing

Ready to Dive in?

MARKET

MNG: The Government of Mongolia's 2021-2024 agenda is evaluated at 67%.

GOV: Selbe Sub-Center to become Ulaanbaatar's first model "20-Minute City".  

UB: The capital's 2025 budget is revised to show a ₮1.6 trillion deficit.

🤝 $ION Secures $13.5M Deal

Toronto-listed ION Energy (ION.V) signs a $13.5 million agreement with strategic investor SureFQ to jointly develop the Urgakh Naran lithium project in Mongolia.

👀 Deal Details

SureFQ pays $5.5 million to ION Energy over 4.5 years and invests an additional $8 million over the next 4 years to advance the project. ION Energy retains a 20% stake in the project until commercial lithium production begins at Urgakh Naran.

• ⤴️ Following the announcement, shares of ION Energy, which implements Mongolia's first lithium project, surge by over 22% on the Toronto Stock Exchange, reaching CAD 0.055.

🤔 About SureFQ

SureFQ, a firm specializing in sustainable energy solutions and lithium resource development, leverages its industry expertise and advanced extraction technologies to accelerate the project’s progress. As a strategic investor, SureFQ focuses on developing high-potential assets that support the global energy transition.

📝 Financial Updates and Debt Settlement

In addition to the joint venture agreement, ION Energy also announces a debt settlement of $120,000. The company is to issue 3,000,000 common shares at $0.04 per share to settle the debt, providing additional liquidity for the development of its lithium projects.

Moreover, ION Energy has terminated its previously announced business combination with United Rare Earths. This decision reflects the company’s strategic focus on lithium exploration and development, ensuring resources are concentrated on high-potential projects like Urgakh Naran.

Looking Ahead, as Mongolia’s first lithium project, Urgakh Naran holds significant potential not only for ION Energy but also for the broader lithium market. The development of Urgakh Naran is particularly timely, given the increasing global demand for lithium, which is crucial for the production of batteries for electric vehicles (EVs). 

🪽 Mongolia Frees Coal Pricing

In the past week, 2 significant regulatory changes occur at the Mining Products Exchange (MPE). These changes shift how the exchange operates, and expectations rise for further development in the coming years. Here is an overview of the recent changes and what lies ahead.

🔥 Regulatory Amendments

The recent updates to the MPE regulations align prices with market movements and introduce more flexibility in payment terms. The Ministry of Finance, in collaboration with the Mongolian Stock Exchange (MSE), is working on submitting a revised Exchange Law that incorporates these principles. The goal is to ensure these changes become part of the legal framework governing the exchange.

🧨 Hot Off the Press

Additionally, the Minister of Finance states that the products currently traded on the Mining Products Exchange are preparing for international markets, with a memorandum of understanding (MoU) in the works. This development could boost the MPE’s position in the global market if it materializes.

🔍 What Has Changed?

Previously, trading on the Mining Products Exchange occurs at fixed prices determined behind the scenes. However, the new framework allows trading at prices indexed to market movements. This change aligns the exchange with modern market practices, offering more flexibility for both buyers and sellers. Furthermore, buyers now have the option to trade the remaining coal within their contracts, adding further flexibility to the trading process.

🧮 How Is the Indexed Price Determined?

The indexed pricing mechanism involves a basket of price indices for products traded on the exchange. This includes the price of coal at Gantsmod Port, the coking coal price index for the domestic Chinese market, and the price of coking coal at Jintan Port. The use of multiple components ensures that the price is not solely dependent on one port but instead reflects the combined weight of various elements that affect the market.

• For example, the price of Gantsmod coal holds a weight of 20% in the index for forward contracts. If the price of Gantsmod coal falls while prices at other ports remain high, the overall price does not decrease significantly, offering a buffer against price fluctuations.

📈 Looking Ahead: The Future of MPE

In the next 2-3 years, the MSE plans to expand its offerings by introducing commodity trading on the S&P Platts platform, diversifying product offerings, and potentially allowing for dual trading on international exchanges. This move enhances the MPE's global integration and market accessibility. As coal prices, vital to Mongolia’s economy, fluctuate, there is a growing effort to stabilize and adjust the trading mechanisms accordingly. If brokers continue to engage with the MPE, the market finds its balance and return to stability.

Here’s Why Over 4 Million Professionals Read Morning Brew

• Business news explained in plain English

• Straight facts, zero fluff, & plenty of puns

• 100% free

See for yourself

⭐ Selected for you

ECONOMY & BUSINESS

• Tsagaansuvarga: The Hue of Orange in the Green Future. (MSight)

• Notice of Funding Opportunity: Academy for Women Entrepreneurs 2025. (USEmbassy) 

• Mongolian Mining Corporation to issue new bond priced at $350 million with an 8.44% coupon, maturing in 2030. (MMC)

• Why Mongolia’s Debt Market Is Attracting Strong Investor Appetite. (TheDiplomat)

• EBRD Creates Growth Opportunities for Young Mongolian Entrepreneurs. (EuropeanString)

• Mongolia's Chinggis Khaan International Eyes Growth Markets. (AviationWeek)

POLITICS

• Mongolia in $500 Million Debt Offering and Concurrent Tender Offer. (ClearyGottlieb)

• Mongolia to Launch the "Atar-IV" Campaign. (Montsame) 

• Bangkok and Mongolia Forge Cultural Ties with “Two Stallions” Sculpture Installation. (PRBangkok)

• IFRC and CIDCA Launch First Joint Project in Asia to Strengthen Climate Resilience in Mongolia. (IFRC)

CULTURE & LIFESTYLE

• Mongolia Receives Highest Number of Chinese Tourists in 2024. (Xinhua)

• Largest Fully Preserved Dinosaur Claw Unearthed in Mongolia’s Gobi Desert. (CNN)

Partnership Inquiries:

Place an ad
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.