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Mongolia Daily: UB plans 3,000-unit Ger redevelopment, ETT sets export record, and Parliament stalls

MongoliaDaily

Politics

Ruling Party Rift Stalls Parliament as Cabinet Shake-up Collides with 2026 Budget and Election Preparations

Published: 2025-10-04

Political infighting within the ruling MPP has disrupted state operations, delaying debate on the 2026 budget and halting some standing committee work. Prime Minister G. Zandanshatar announced the appointment of MP B. Enkhbayar as Justice and Home Affairs Minister to intensify action on alleged coal corruption, but Parliament did not take up the introduction due to agenda procedures controlled by the Speaker’s council. Until Enkhbayar is formally introduced and sworn in, incumbent L. Munkhbaatar’s mandate continues. Opposition parties and some MPs are pushing to postpone budget discussions until the MPP resolves internal disputes. Meanwhile, the General Election Commission warns Mongolia must replace about 3,000 vote-counting machines—most beyond service life—requiring MNT 41.7 billion, with only one-third funded in the draft budget, risking readiness for 2027–2028 polls. The Third Thermal Power Plant remains at reduced capacity and needs major financing to mitigate ongoing reliability risks.

“To combat coal theft decisively, I have appointed B. Enkhbayar as Minister of Justice and Home Affairs” - Prime Minister G. Zandanshatar (gogo.mn)

“Parliament’s agenda cannot include the ministerial item unless approved by the Speaker’s council” - B. Baasandorj, Secretary-General of Parliament (gogo.mn)

“If the expulsion of MP B. Enkhbayar is not reconsidered, we will leave the MPP caucus and the party” - Group of seven MPP MPs (gogo.mn)

“Only 1,000 devices are funded; we need 3,000 to maintain trust and readiness” - P. Delgernaran, GEC official (eagle.mn)

“Plant III remains risky; only 30% is being renewed and 70% still needs financing” - N. Tavinbekh, Government Plenipotentiary for Plant III (eagle.mn)

Coverage:

Economy

Erdenes Tavan Tolgoi Sets Monthly Export Record with Market Reforms and New Mine Start-up

Published: 2025-10-04

State-owned Erdenes Tavan Tolgoi (ETT) exported 3.2 million tonnes of coal in September via Gashuunsukhait and Khangi, its highest monthly volume on record, following a three-month special regime imposed on the company from July 9. The government-appointed team revived exchange trading—75 sessions selling 5.8 million tonnes for $513.8 million—unblocked contracts, lifted monthly haulage from 1.7 to 2.8 million tonnes, and raised fleet readiness from 56% to 81%. A new mine at the Tsankhi section enables sales of 1/3 coking coal at international prices, improving unit economics by 40%. Authorities launched Caofeidian-term tenders on October 6 to reach Japan, South Korea, and India, and drafted a 2026–2029 strategy.

“The team has delivered tangible results that help revive the economy and increase foreign reserves, ensuring ETT’s operations continue normally.” - Prime Minister G. Zandanshatar (montsame.mn)

The Cabinet will decide whether to extend the special representative team. Officials expect stronger exchange sales in Q4, supporting budget revenue and a projected 5.7% GDP growth contribution from ETT.

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Industrial Output Contracts on Lower Mining Production Despite Sales Holding Steady

Published: 2025-10-04

Mongolia’s industrial output fell 5.8% year-on-year to MNT 27.1 trillion in the first eight months of 2025, driven by a 10.7% drop in mining and quarrying to MNT 20.4 trillion, according to preliminary data from the National Statistics Office. Coal and crude oil extraction declined sharply—coal by MNT 4.8 trillion (32.9%) and crude oil by MNT 105.1 billion (13.6%). In contrast, several mined concentrates, including iron and zinc, increased by 10.5–77.4% by metal content, while brown and hard coal, crude oil, unrefined gold, and silver concentrates fell 9.7–34.7%. Manufacturing showed mixed dynamics: stronger output of liquid milk, flour, cement, lime, cathode copper, and combed cashmere (up 5.3–93.9%) contrasted with declines in beverages, metal billets, meat, vodka, pure alcohol, knitwear, cigarettes, and briquetted fuel (down 2.6–29.6%). Total industrial sales edged up 0.3% to MNT 34 trillion, supported by a 13.1% rise in manufacturing sales. Mining sales rose 3.9% year-on-year, with metal ore revenues up 63.1% and mining support services up 19.4%. Exports accounted for MNT 23.6 trillion, of which mining contributed MNT 22.7 trillion; coal made up 37.5% of mining export sales, metal ores 58.1%, crude oil 2.8%, and other minerals 1.6%.

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Half of Social Insurance Contributors Earn Below MNT 2.4 Million as Payrolls and Hiring Rise in Q2

Published: 2025-10-04

Mongolia’s Social Insurance General Office reports expanded coverage and rising payrolls in Q2 2025. Social insurance contributions were paid by 54.4 thousand enterprises, covering 830.8 thousand employees—up 5.5% year-on-year and 2.4% from Q1. Mining and quarrying drove annual headcount growth (+5.4 thousand, +11.5%), while construction and mining led quarterly gains (+9.1 thousand, +6.1%). The national average monthly nominal wage reached MNT 2.728 million (+4.0% quarter-on-quarter), with a median of MNT 2.356 million and base pay averaging MNT 2.468 million. Wage distribution remains compressed at the lower end: 26.3% of contributors earn MNT 1.5–2.5 million, and 2.9% earn up to MNT 660,000; overall, 50% earn below MNT 2.4 million. Real wage indices fell 1.9–14.8% in utilities, international organizations, finance/insurance, household employers, and water/waste, but rose 0.6–9.6% in other sectors.

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Infrastructure

Ulaanbaatar Advances Ger District Redevelopment in Khaanin Material Area with 3,000 New Units Planned

Published: 2025-10-04

Ulaanbaatar has cleared most land for the first phase of a major ger district redevelopment in Songinokhairkhan’s Khaanin Material area, targeting denser, serviced housing. Phase one foresees 1,800 apartments across 12.6 hectares, with 95% of 232 plots already vacated; phase two plans 1,200 units on 8.1 hectares. A consortium of Materialimpex JSC, Materialimpex Construction LLC, and Conconsulting LLC won implementation rights on September 11, 2025, with the Ulaanbaatar Housing Corporation overseeing execution. The project aims to expand supply of affordable units, reduce overcrowding, and mitigate air and soil pollution—key priorities as the city seeks to transition ger areas to formal housing with infrastructure. Timelines, financing terms, and allocation mechanisms were not disclosed in the reports, but the clearance progress signals near-term construction start.

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Ulaanbaatar Marks Red Line for Tuul Expressway–First Ring Interchange, Setting 2027 Opening Timeline

Published: 2025-10-04

Ulaanbaatar officials delineated the “red line” for the first interchange of the planned Tuul Expressway and the city’s First Ring Road near Zaisan Valley, signaling the start of on-site works. The six-lane, 32 km expressway will run from the Ulaanbaatar–Nalaikh road to the western safety roundabout, with eight grade-separated interchanges, 13 bridge sections totaling 9.8 km, and four tunnels. The longest bridge segment—7.2 km—will connect Marshal Bridge to Zaisan Bridge. Authorities target commissioning by August 15, 2027, and full systems handover, including equipment and CCTV, by August 15, 2028. Land acquisition covers 132 plots across four districts; 22 have been cleared via land swaps. Traffic studies project 5–30% load reductions on major corridors and a 13.5% increase in average speeds, easing congestion and lowering noise and air pollution in residential areas.

“We are marking the first intersection point based on the detailed design; next we’ll extend works east to Nalaikh and west to Marshal Bridge. The expressway is slated to open on August 15, 2027, with full systems delivered by August 15, 2028.” - B. Odbayar, Head of Ulaanbaatar City Administration (eagle.mn)

“Design is finalized, temporary access roads are underway, and contractor camps at three sites will be fully operational by November 15. Workforce will scale from 30–40 managers this year to about 1,000–1,500 next year.” - B. Davaasuren, Tuul Expressway Project Consultant, HaoYuan Group (urug.mn)

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Published: 2025-10-04

Ulaanbaatar’s Bayanzürkh District will open a new 1.5 km road connecting Narnii Road to the General’s Club (Zhanjin Club) on October 6, according to state news agency Montsame. The project, executed by Shinee Khotyn Tsamkhag LLC, aims to ease congestion and improve access in the eastern part of the capital, where ongoing urban expansion has strained arterial routes. Pedestrian infrastructure is scheduled to be completed by October 15, after which the project will be submitted to the state commission for formal handover. The phased timeline suggests vehicular traffic will begin ahead of full completion, a common approach used to reduce immediate bottlenecks while final works proceed. No cost figures were disclosed, and authorities have not indicated traffic management changes during the final pedestrian works period.

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Society

Senior Citizens Press for Higher Pensions and Softer Loan Terms as Parliament Forms Task Force

Published: 2025-10-04

A group of retirees is seeking significant pension and credit relief, following a 37-day sit-in outside the State Palace led by pensioner Ts. Altanzul. Their demands include doubling the minimum pension (currently MNT 689,000; MNT 572,400 for proportionate pensions) or raising it by 50% if doubling is not feasible, lifting the social welfare pension by MNT 495,400, and restoring pension-backed loan terms to a 70/30 debt-to-income ratio over 36 months, while ending interest charged on remaining balances. A parliamentary working group headed by MP S. Erdenebat met the representatives and assigned ministries and the Bank of Mongolia to propose options on pension increases, loan interest reductions, and elder care reforms before next week’s cabinet meeting. MP D. Regdel urged closing loopholes allowing late-stage contribution spikes to secure higher pensions.

Coverage:

Health

Unscheduled Inspections Target Imported Food Safety and Labeling Compliance

Published: 2025-10-04

Mongolia’s food and agriculture authorities have launched unannounced inspections of businesses importing food raw materials and products, running through October 30, 2025. The checks, conducted by Ulaanbaatar’s Food and Agriculture Control Department under a broader month-long campaign, are flagging frequent violations: unclear product origin, missing laboratory certifications, and labeling non-compliance. Inspectors report some importers store goods in non-standard warehouses and supply items from China, South Korea, Japan, and Germany without meeting Mongolian labeling requirements, including incomplete or inadequate label information. Authorities say legal measures are being enforced against offending firms. The initiative aims to tighten food safety oversight at border checkpoints and within domestic distribution networks, signaling heightened scrutiny of import documentation, storage standards, and consumer information practices for foreign-sourced food products.

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