Priority Export Sectors

MINING AND CRITICAL MINERALS 

The mining sector is a key economic driver of Mongolia. Consequently, the primary law governing the sector, the Minerals Law of 2006, is amended regularly to reflect new developments. The most recent amendment was passed in April 2024, which notably modified provisions for exploration tenement tenders and license issuance.
A noteworthy provision of the Minerals Law is that all mineral resources naturally occurring on or beneath Mongolia’s surface are the property of the State. The State therefore reserves the exclusive right to grant exploration and mining licenses. Furthermore, a mineral deposit can be classified as “Strategic” by the Government if it may impact
national security, influence national or regional economic and social development, or if it produces (or has the potential to produce) more than 5% of the country’s total annual GDP. It is prohibited for any person, either alone or jointly with an affiliated entity, to own more than 34 percent of the total issued shares of a legal entity that holds a special license for a strategic mineral deposit.

Mongolia has exceptional geological potential for mineral development, with strong growth prospects in copper, base metals, gold, coal and uranium. It is worth noting however, that this potential remains largely untapped; systematic geological mapping has so far covered only 40% of the country’s vast territory. While the central and eastern regions have been relatively well-explored, significant untapped potential remains in the under-explored western part of the country. The mining sector is the cornerstone of Mongolia’s economy, accounting for approximately 90% of total exports, with copper, gold and coal as the primary drivers. The sector is the primary source of foreign direct investment and remains structurally critical for Mongolia’s macroeconomic stability.

The Ministry of Mining and Heavy Industry (MMHI) is responsible for the development and coordination of legislative frameworks, strategic programs and sectoral initiatives. Under its purview, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) functions as the central regulatory body, mandated to issue exploration and mining licenses, enforce compliance with the Minerals Law and Petroleum Law, monitor environmental and operational standards and facilitate investment in the extractive industries. The country is considered one of the world’s key suppliers of copper and coal.

Source: Ministry of Mining and Heavy Industry; Mineral Resources and Petroleum Authority of Mongolia

RENEWABLE ENERGY

Mongolia possesses abundant renewable energy resources, including exceptional solar, wind, and hydro potential. The country has set ambitious targets to increase the share of renewable energy in its national energy mix and reduce dependence on imported energy.

Mongolia’s renewable energy sector plays a highly strategic role in the national grid, aiming to overcome winter power shortages and meet carbon-reduction targets. Although coal-fired power plants continue to provide the country’s baseline energy, the Ministry of Energy has set a major target to significantly increase the share of renewables. The country possesses massive solar energy potential, largely concentrated in its southern territory, with established assets like the Khushig Valley and Darkhan solar PV plants actively feeding the Central Energy System. Furthermore, the country successfully leverages the vast wind resources of the Gobi region through flagship projects such as the Salkhit, Sainshand, and Tsetsii wind farms. Current initiatives focus on deploying decentralized solar-plus-storage grids in western regions to cut dependency on electricity imports, while integrating dedicated captive wind farms to power South Gobi mining operations.

Mongolia’s vast steppe grasslands form the foundation of its second-largest economic sector. As the core pillar of the nation’s economic diversification strategy, agribusiness reduces structural reliance on mining, contributing significantly to GDP, and driving a substantial share of national employment. Mongolia’s pastoral economy is backed by a resilient national herd of approximately 58 million livestock (10 million cattle, horses, and camels; 48 million sheep and goats).

This population fuels a powerful primary production value chain:

Key Agriculture & Light Industry Projects

LOGISTICS AND TRANSPORT SERVICES

Mongolia is a landlocked country with a territory of approximately 1.6 million square kilometers. The country’s population is relatively small and widely dispersed across vast geographic areas, creating unique challenges for the development and maintenance of transport infrastructure. Due to long travel distances, harsh climatic conditions, low population density in rural areas, and significant seasonal variations, the provision of safe, reliable, and efficient transport services remains a major infrastructure challenge. Mongolia’s strategic location between Russia and China positions it as a potential regional logistics hub.

The country’s transportation system comprises railways, road networks, and airways. Mongolia’s road network is classified into international roads, national roads, capital city roads, local roads, special-purpose roads, and internal roads. The total road network extends to approximately 111,916.7 kilometers. Of the total network, 4,299.3 kilometers are designated as international roads, while 14,921.3 kilometers are classified as national roads.

Among the national road network, approximately 7,485.6 kilometers consist of paved roads. In addition, 898.4 kilometers of special-purpose roads are currently in operation, primarily supporting mining and industrial transportation activities.

Key Infrastructure Developments

DIGITAL ECONOMY AND INNOVATION

Mongolia is pursuing an ambitious digital transformation agenda under its “Digital Nation” vision. The government has established a comprehensive legal and regulatory framework to support the digital economy, driving the “Digital First” movement to expand connectivity, cybersecurity, and e-governance.

Mongolia has a highly digitally connected economy with widespread internet penetration and a young, digitally fluent urban population that makes it an attractive base for digital platforms and innovation. The government has prioritized information and communications technology in its economic diversification, driving the Digital Nation strategy to expand connectivity, cybersecurity, and e-governance. Spurred by state-led progress, a vibrant startup ecosystem has emerged with highly educated founders gaining international attention, particularly in tech-driven sectors like fintech, e-commerce, and logistics-tech that successfully pair digital channels with physical fulfillment.

TOURISM AND HOSPITALITY

Tourism is a priority sector for Mongolia’s economic diversification, with the government declaring 2023–2028 as the “Years to Visit Mongolia.” The sector provides significant opportunities for investment in hospitality infrastructure, tourism services, destination development, and innovative travel products. With vast territories, pristine ecosystems, and internationally recognized attractions, Mongolia offers investors opportunities to develop high-value tourism products including eco-tourism, adventure tourism, cultural tourism, luxury travel, wellness tourism, and MICE tourism.

Regulatory Framework & Key Projects