From June 13 to 15, 2026, Wang Yi, Minister of Foreign Affairs, paid an official visit to Mongolia at invitation, held talks with Mongolian Foreign Minister Battsetseg and issued a joint press communiqué. Both sides confirmed that they will take the consensus of the two heads of state as the guide to promote the continuous development of the China-Mongolia comprehensive strategic partnership, agreed to strengthen the docking of development strategies, promote projects within the framework of high-quality joint construction of the Belt and Road Initiative and the Steppe Road Initiative, expand mutually beneficial cooperation in mining, energy, industry, infrastructure, connectivity, green development and other fields. The Chinese side encourages more Chinese enterprises to invest and operate in Mongolia, and the Mongolian side promises to make active efforts to protect the legitimate rights and interests of foreign investors including Chinese enterprises.
Mongolia is located at the intersection of Central Asia and Northeast Asia, with complete types of mineral resources and abundant reserves. Mining is the absolute pillar of Mongolia's economy, accounting for 26% of GDP, 79% of total industrial output value, 95.4% of total exports, and 74% of foreign direct investment. The country has proven more than 80 types of minerals, among which strategic resources such as copper, coal, gold and rare earth occupy an important position in the global market. With the continuous deepening of China-Mongolia economic and trade cooperation, the bilateral trade volume reached 18.62 billion US dollars in 2024, hitting a record high, and China has long maintained its position as Mongolia's largest trading partner. This article will combine the latest policy developments, mineral resource endowments and practical experience of Chinese-funded enterprises to provide a full-process and implementable investment guide for Chinese mining enterprises.
Mongolia is an important mineral resource country in Asia, with more than 80 proven mineral types and more than 6,000 mineral occurrences, and some large mines have leading reserves internationally.
Copper: Mongolia has proven copper reserves of more than 60 million tons. The Oyu Tolgoi copper-gold mine, located in Umnugovi Province and only 80 kilometers away from the Gants Mod Port on the China-Mongolia border, is one of the largest undeveloped copper-gold mines known in the world. The preliminary proven copper reserves are about 34 million tons, and the gold reserves exceed 1,300 tons, known as the "Mine of the Century". The project is 66% owned by Australia's Rio Tinto Group and 34% owned by Mongolian state-owned enterprises. It produced 215,000 tons of copper in 2024, and is expected to produce about 500,000 tons of copper per year from 2028 to 2036. After reaching full production, it will rank among the fourth largest copper mines in the world. In addition, the Tsagaan Suvarga copper mine in Dornogovi Province has 1.5 million tons of copper metal, which is a Sino-Mongolian joint venture (led by China Minmetals) and the construction of the concentrator was started in 2023.
Coal: Mongolia has proven coal reserves of about 162 billion tons. The Tavan Tolgoi coal mine, located in Umnugovi Province, is one of the largest undeveloped high-grade coking coal deposits in the world and has been listed as a national strategic mineral resource. The Nariin Sukhait coal mine and Baganuur coal mine are also large and medium-sized producing coal mines. It is rich in coking coal and thermal coal resources, which highly meets the demand of China's energy market.
Gold and others: Mongolia has proven gold reserves of about 3,000 tons, mainly distributed in Zavkhan Province and Uvs Province in the Gobi Desert region. In addition, the country is also rich in rare earth, uranium, iron, fluorite, phosphorus, oil and other resources. The rare earth ore belts in the South Gobi and East Gobi have considerable proven reserves, with both light rare earths and medium-heavy rare earths, which have important investment value against the background of global energy transition and rare earth strategic games.
It should be specially noted that Mongolia's infrastructure is relatively backward, with a total railway length of about 2,000 kilometers, and there is only one railway connecting China and Russia in the territory. Insufficient supporting facilities such as mine roads, water and power supply, and communication networks lead to high transportation costs for mineral development. However, the second cross-border railway between China and Mongolia (Gashuunsuhait-Gants Mod Port) started construction in 2025 and is expected to be completed in two and a half years. After completion, coal transportation between China and Mongolia will be realized by railway, greatly reducing logistics costs and bringing major benefits to mining investment.
II. Legal Policies and Regulatory Framework
Mongolia has formed a mining supervision system with the Minerals Law and Investment Law as the core, supporting tax, environmental protection, labor and foreign exchange management regulations.
Competent departments: The Ministry of Industry and Mineral Resources (MRPAM) undertakes the responsibilities of exploration right and mining right approval, mining policy formulation, etc.; the National Development Agency is responsible for foreign investment approval and strategic deposit identification; the Ministry of Environment and Tourism is responsible for the approval of environmental protection plans. Mining rights are divided into two categories: exploration right and mining right. The exploration license is valid for 3 years and can be extended 3 times; the mining license is valid for 30 years and can be extended 2 times.
Foreign investment access policy: Mongolia provides national treatment for foreign investment, and foreign investment is allowed in all fields except explicitly prohibited fields such as narcotics and weapons production. The minimum investment amount for foreign investors is 100,000 US dollars. If a foreign state-owned enterprise intends to hold more than 33% of the shares of a mining company, it must be approved by the National Development Agency. In January 2026, the Mongolian government announced a systematic adjustment of mining policies, with the core measure being the revision of the Minerals Law, planning to introduce a key mineral (strategic mineral) management system, establish a diversified granting mechanism combining "application system" and "selection system" for exploration licenses, and adjust the collection method of mineral resource royalties. The bill is planned to be submitted to the spring session of the State Great Khural in March 2026 for deliberation.
Tax incentives and stability certificate: The Mongolian Investment Law stipulates that eligible investors shall be granted a "stability certificate", which stabilizes the tax rates of corporate income tax, customs duty, value-added tax and mineral resource royalty within the validity period. For mining and heavy industry with an investment of 30-100 billion Mongolian tugriks, a 5-year tax rate stability period can be obtained in Ulaanbaatar area and 8 years in the western region; for investment of more than 500 billion tugriks, a maximum 18-year stability period can be obtained in the western region. In addition, imported machinery and equipment for power plant and railway project construction can be exempted from customs duty and the value-added tax can be reduced to 0.
Strategic deposits and local value-added: The Mongolian Mining Law defines "strategic deposits" as deposits that may have potential impacts on national security or economic and social development. The government has the right to hold equity in strategic deposit projects, and the specific proportion depends on whether the government participates in exploration. In recent years, Mongolia has continuously promoted the transformation of the mining industry from "raw ore export" to "local deep processing", restricted the export of raw ores such as copper concentrate, and required foreign-funded enterprises to build smelters or processing plants locally. In 2025, Mongolia reached an agreement with Rio Tinto Group on the Oyu Tolgoi project, requiring the construction of a power plant and copper processing plant on site. This policy orientation creates structural opportunities for Chinese-funded enterprises to participate in the field of mineral deep processing in Mongolia.
III. Core Investment Opportunities in the Mining Sector
Relying on rich mineral resources, the deepening of China-Mongolia comprehensive strategic partnership and the acceleration of infrastructure connectivity, Mongolia brings diversified mining investment opportunities for Chinese-funded enterprises.
Integrated copper mine development and deep processing: After the Oyu Tolgoi copper-gold mine reaches full production, it will produce about 500,000 tons of copper per year, and 90% of the copper concentrate will be exported to China. The Mongolian government requires the construction of a smelter locally to process copper concentrate into copper ingots or copper products before export. Chinese-funded enterprises can rely on technical advantages to participate in the construction of copper deep processing projects, export advanced beneficiation, smelting and environmental protection technologies, and cooperate in the construction of copper smelters to obtain policy preferences. In addition, there is room for cooperation in the construction of concentrators and technological upgrading of Sino-Mongolian joint venture copper mine projects such as Tsagaan Suvarga.
Coal mining and cross-border logistics: World-class coking coal resources such as the Tavan Tolgoi coal mine have large-scale development value. With the advancement of the construction of the second cross-border railway between China and Mongolia (Gashuunsuhait-Gants Mod), coal transportation will be realized by railway, and logistics costs will be greatly reduced. Chinese-funded enterprises can participate in the reconstruction and expansion of coal mines, the upgrading of coal preparation technology, as well as the construction of supporting projects such as cross-border railways and port infrastructure, to build a stable China-Mongolia coal supply chain.
Rare earth and strategic mineral development: Against the background of intensified global rare earth strategic games, the rare earth resources in the South Gobi and East Gobi of Mongolia have attracted increasing attention. The country's rare earth ore belts have both light rare earths and medium-heavy rare earths, and have not been developed on a large scale. Chinese-funded enterprises can rely on China's technical accumulation in rare earth separation and smelting to participate in the exploration and development of rare earth mines in Mongolia and seize the first opportunity of strategic resources. At the same time, strategic minerals such as uranium and fluorite also have investment potential.
Mining supporting infrastructure and services: There is a huge gap in infrastructure in Mongolian mining areas, and there is strong demand for the construction of roads, water and power supply, communication networks, employee camps, tailings ponds, etc. Major projects such as China-Mongolia cross-border railways, port upgrading and power interconnection are being promoted, and Chinese engineering enterprises can actively participate to obtain stable returns. In addition, the insufficient supply of supporting services such as environmental protection, safety, community services and logistics customs clearance also provides market space for Chinese service enterprises.
IV. Core Compliance Points and Legal Basis
Mining investment compliance is the core of project survival and stable operation. Chinese enterprises shall strictly abide by the whole-process supervision requirements of Mongolia, covering all links such as company establishment, mining right acquisition, production and operation, export, taxation, foreign exchange, environmental protection and community.
(I) Compliance of Company Registration and Investment License
Register a local company in accordance with the Company Law and the Law on State Registration of Legal Persons of Mongolia, and complete tax registration in Mongolia. The minimum investment amount for foreign-invested enterprises is 100,000 US dollars, and foreign investors must hold 25% or more of the shares. It is recommended to hire a local legal consultant to ensure that the company establishment documents meet the requirements of Mongolian law.
Foreign companies may set up branches or representative offices in Mongolia. A branch may perform all or part of the main business functions of the parent company, and may also assume the role of a representative office at the same time; a representative office is mainly responsible for safeguarding the legitimate rights and interests of the parent company and concluding transactions on behalf of the parent company as a legal agent. Neither type of institution has independent legal personality, and the foreign company shall bear full responsibility for the debts incurred by its branches and representative offices in Mongolia.
It is particularly worth mentioning that the Company Law of Mongolia and the Foreign Investment Law were revised in 2011 and 2013 respectively, but they have not been updated in the International Labour Organization (ILO) and the country guide of China's Ministry of Commerce. A particularly important change after the implementation of the revised new company law and investment law is that foreign enterprises setting up entities in Mongolia only have two forms: subsidiaries and representative offices, and there are no branches.
(II) Compliance of Mining Right Acquisition and Operation
Apply for an exploration license or mining license to the Ministry of Industry and Mineral Resources in accordance with the Minerals Law, and submit a geological exploration plan and environmental impact assessment document. Mining projects with foreign shareholding exceeding 33% must be approved by the National Development Agency. It should be specially noted that the Mongolian government is revising the Minerals Law, planning to introduce a key mineral list and a new license granting mechanism, and enterprises must pay close attention to legislative developments. The transfer of mining rights must be approved in advance by the competent department. The exploration license must be transferred together with the exploration documents, and the mining license must be transferred together with the mining equipment and documents.
(III) Compliance of Environmental Protection, Safety and Labor
In accordance with the Environmental Protection Law and the Environmental Impact Assessment Law, the environmental impact assessment (EIA) approval must be passed before the start of construction, environmental deposit (usually 50% of the investment budget) shall be paid, and the obligation of mine closure and reclamation shall be fulfilled. Mining development enterprises shall formulate an environmental protection plan and submit it to the Ministry of Environment and Tourism for approval. In terms of employment, it is necessary to abide by the Labor Law and pay post fees for foreign employees (10 times the Mongolian minimum wage standard for mining enterprises). In terms of community relations, it is recommended to take the initiative to communicate with the community where the project is located, assume corporate social responsibility, and reduce the risk of community conflicts.
(IV) Compliance of Taxation, Foreign Exchange and Export
The main taxes in Mongolia include corporate income tax (standard tax rate 25%), value-added tax (standard tax rate 10%), mineral resource royalty, etc. Enterprises shall declare and pay taxes in accordance with the law, and reasonably use the tax stability certificate policy to lock in tax rates. In terms of foreign exchange, Mongolia allows foreign enterprises registered in Mongolia to open foreign exchange accounts. The state does not restrict the use and storage of foreign exchange by individuals and enterprises, but the repatriation of profits shall comply with tax compliance requirements. In terms of export, it is necessary to abide by Mongolia's raw ore export restriction policy, and copper concentrate and other products need to obtain export quotas or complete local processing before export.
(V) Compliance of Domestic ODI Filing in China
Before capital exit, it is necessary to complete outbound direct investment (ODI) filing with the NDRC, MOFCOM and SAFE of China, obtain the Enterprise Overseas Investment Certificate, and ensure that the domestic and foreign capital link is closed-loop and legal. Investment involving sensitive industries (such as strategic minerals such as rare earth and uranium) or sensitive countries and regions shall go through stricter approval procedures.
V. Investment Risk Tips and Practical Responses
Mongolia's mining investment has significant opportunities, but affected by multiple factors such as political cycles, policy adjustments, resource nationalism and weak infrastructure, there are many potential risks, and enterprises need to establish a full-dimensional risk prevention and control system.
(I) Compliance Risk of Foreign Labor Use
According to Mongolian labor and immigration laws, when Chinese enterprises send employees to work in Mongolia, they must strictly abide by the principle of "permit first, entry later". First, the employer shall apply for the foreign employee quota and "invitation permit" to the Mongolian labor department, and then apply for a work visa for the employees after approval. Within 10 days after the employee enters the country, the employer must apply for a "work permit", and apply for a "residence permit" within 21 days. Special attention: In 2026, the minimum monthly salary standard for foreign employees is 792,000 tugriks, and the employer shall pay a "job fee" equivalent to twice the minimum wage (i.e., 1,584,000 tugriks) per month, unless exempted by the government.
(II) Risk of Policy Changes and Resource Nationalism
Mongolia's mining laws and policies are adjusted more frequently in different political cycles. The government may reinterpret or adjust the terms of signed mining investment agreements based on "public interest" or "national interest", and even promote renegotiation. In addition, there is a strong sentiment of resource nationalism in Mongolia, and there have been historical practices of excluding Chinese capital and legislating to restrict Chinese enterprises (such as the legislation excluding Chinese enterprises from the Oyu Tolgoi project). Enterprises shall pay close attention to the political situation and legislative developments, hire local lawyers familiar with Mongolian mining law, strive to obtain endorsement from the government or parliament in the investment agreement, and lock in long-term policy stability.
(III) Risk of Mining Right Disputes and Cadastre
The overall level of geological exploration in Mongolia is low, and the technical data of deposits may be old and inaccurate. Some mining areas have overlapping mining rights or boundary disputes. During the due diligence stage, it is necessary to hire an independent geological survey institution and a local senior lawyer with the qualification to appear in the Supreme Court to conduct a Title Deed Search & Physical Verification of mining rights to ensure clear mining rights and clear boundaries.
(IV) Risk of Infrastructure and Logistics Costs
Mongolia has weak infrastructure, insufficient power supply, poor road conditions in mining areas, long and cold winters, and high logistics costs. Enterprises shall fully evaluate the infrastructure supporting needs of the project and include infrastructure investment in the total cost in the feasibility study. Actively strive to participate in major projects such as China-Mongolia cross-border railways, port upgrading and power interconnection to reduce long-term logistics costs. At the same time, cooperation with local enterprises or international mining giants can be considered to share infrastructure.
(V) Risk of Community Relations and Environmental Protection Compliance
Mongolia's environmental protection requirements are becoming increasingly strict, with a high proportion of environmental deposits (50% of investment budget), and environmental violations may lead to project suspension or fines. Enterprises shall strictly abide by the EIA procedure, adopt internationally advanced environmental protection technologies, take the initiative to establish good relations with the community where the project is located, sign community development agreements, provide employment and training opportunities, and reduce the risk of community conflicts.
Driven by Foreign Minister Wang Yi's visit to Mongolia in June 2026, the China-Mongolia comprehensive strategic partnership has entered a new stage of development. The two countries have broad prospects for mutually beneficial cooperation in mining, energy, infrastructure and other fields. For Chinese enterprises, Mongolia's rich mineral resources, geographical adjacent advantages and policy dividends brought by the deepening of China-Mongolia economic and trade cooperation constitute a rare window of investment opportunities.
However, opportunities coexist with risks. Challenges such as frequent policy adjustments, resource nationalism sentiment and weak infrastructure in Mongolia cannot be ignored. When Chinese enterprises invest in mining in Mongolia, they must abandon the simple thinking of "mining and selling ore", take "compliant operation, local deep processing, and whole-industry chain layout" as the core strategy, and deeply cultivate high value-added links such as copper smelting, clean coal utilization, and rare earth separation and processing. At the same time, strictly abide by the legal bottom line, consolidate mining right and tax due diligence, and actively fulfill corporate social responsibility, so as to obtain long-term value dividends while ensuring investment safety, and contribute to the high-quality development of China-Mongolia economic and trade cooperation.
[1] Ministry of Foreign Affairs of the People's Republic of China: Joint Press Communiqué on the Talks Between the Foreign Ministers of China and Mongolia, June 15, 2026.
[2] Ministry of Commerce of the People's Republic of China: Guide to Outbound Investment and Cooperation by Country (Region) – Mongolia (2024 Edition), 2024. https://www.mofcom.gov.cn/
[3] Official website of the Ministry of Mining and Heavy Industry of Mongolia: https://mmhi.gov.mn/; Official website of the Ministry of Industry and Mineral Resources of Mongolia (MRPAM): https://mram.gov.mn/
[4] International Monetary Fund (IMF): Mongolia: 2024 Article IV Consultation—Staff Report, IMF Country Report No. 25/265, July 2025. https://www.elibrary.imf.org/
[5] U.S. Geological Survey (USGS): The Mineral Industry of Mongolia in 2023, U.S. Geological Survey Minerals Yearbook, May 2025. https://pubs.usgs.gov/myb/vol3/2023/myb3-2023-mongolia.pdf
[6] Ministry of Mining and Heavy Industry of Mongolia: Mongolia Minerals and Mining Investment Guide (2023-2024), Ulaanbaatar, 2024. https://mmhi.gov.mn/wp-content/uploads/2024/05/
[7] World Bank: Impact of Mining Sector on the Economy and Budget Revenue of Mongolia, World Bank Database Service, 2018. https://documents1.worldbank.org/curated/en/946521529488843643/
[8] Economic and Commercial Office of the Chinese Embassy in Mongolia: Mongolia's Economic and Trade Policies, Regulations and Market Dynamics, http://mongolia.mofcom.gov.cn/
[9] General Administration of Customs of China: Statistical Express of China's Import and Export Trade in 2024, issued in January 2025. http://www.customs.gov.cn/
