AGP Executive Report

UNCCD COP17 in Mongolia: Delegates from 196 countries are meeting in Ulaanbaatar to tackle desertification and drought, with UNCCD leaders stressing “restoring land” as a practical, investable agenda—especially for rangelands and pastoral livelihoods where Mongolia says 77% of territory is degraded. Mongolia’s energy and land projects: Mongolia showcased the Egiin Gol hydropower project’s environmental work at UNESCO, while Monpolymet presented its “Build Green Land” post-mining rehabilitation model at COP17. Green mobility push: Mongolia’s “Let’s Liberate” initiative added a new “Green Station” in Ulaanbaatar able to charge 10 EVs, with plans for a wider network. Mongolia investment & markets: Capital Markets Mongolia will hold “Mongolia Investment Forum: London 2026” on Sept 15, focused on sovereign capital, SOE reform and cross-border listings. China industrial supply chain: China expanded the Bayan Obo rare-earth mine in Inner Mongolia with a $74m investment to boost processing capacity, underscoring the critical-minerals race. Energy security planning (China): Beijing unveiled a five-year oil and gas plan targeting peak consumption while expanding domestic output, reserves and pipeline capacity. Aviation milestone for Mongolia route: COMAC’s C919 completed its first scheduled international commercial flight to Ulaanbaatar, replacing Boeing 737 MAX on the route.

UNCCD COP17 in Ulaanbaatar: The UN land conference opened with a push to turn land restoration and drought resilience into measurable action, with Mongolia urging faster implementation and rangeland-focused solutions. Green EV rollout: Monnis Group launched a “Green Station” in Ulaanbaatar that can charge 10 EVs at once, with plans for 36 stations before September and a nationwide network of 500. Mining-to-land restoration: Monpolymet presented its “Build Green Land” project at COP17, citing long-running rehabilitation work including biological restoration on hundreds of hectares and large tree-planting totals. Desertification playbooks: China showcased its “Great Green Wall” and grassland restoration results, while India launched its first Guide to Grasslands and Other Open Natural Ecosystems to back science-based conservation of treeless landscapes. Fuel squeeze continues: Mongolia’s gasoline shortage eased after weekend rule changes, but queues and limited station operations persist. Critical minerals supply: China is investing $74m to expand the Bayan Obo rare earth mine by 50%, aiming to boost ore processing capacity for high-tech demand. Energy transition supply-chain risk: A report warns wind turbine supply chains face rising disruption risk as rare-earth inputs and complex logistics collide. Tech cost shock: DeepSeek raised V4 API prices sharply, forcing developers to rework budgets.

UNCCD COP17 Opens in Ulaanbaatar: Mongolia’s PM Uchral Nyam-Osor urged delegates to move beyond promises and deliver measurable results on land degradation, drought and desertification, highlighting rangeland management and the “Billion Trees” effort. COP17 Press Briefing: Environment Deputy Minister Osama Faqeeha called COP17 a “historic turning point” and warned against maintaining the status quo in land management. State-Owned Enterprise Reform: Chinggis Khaan Wealth Fund Holding reviewed progress under Mongolia’s “Liberate” policy, stressing new governance rules for state-owned companies and greater parliamentary oversight. Data Centres & Power/Water Rules: Australia’s NSW says data centres must “pay their own way” with extra electricity and water, but will get approval within 75 days—an energy-and-infrastructure signal for the region. AI Industrial Push in China: China is building a nationally coordinated, locally tailored AI industry, with rapid growth in computing capacity and demand for AI terminal applications. Rare Earth Supply Chain: China is expanding the Bayan Obo rare earth mine in Inner Mongolia by 50% with a $74m investment to boost ore processing capacity. Mongolia-China Agriculture Link: A Mongolia-linked cotton cooperation conference with a Chinese seed firm focused on agricultural collaboration and exchange.

UN Land Summit in Mongolia: COP17 under the UNCCD opens in Ulaanbaatar Aug. 17–28, with 197 parties and thousands of delegates set to tackle desertification and land degradation affecting 77% of Mongolia’s territory, under “Restoring Land, Restoring Hope.” Energy & Industry Policy: China’s NDRC says it will push a closed-loop recycling system for the “new trio” (EVs, lithium batteries, PV) by 2030, tightening “scrapping with batteries” and cracking down on illegal dismantling. Aviation for Trade Links: Air China begins the COMAC C919’s first scheduled international commercial service to Mongolia (Beijing–Ulaanbaatar), enabled by bilateral airworthiness arrangements. Mining & Critical Minerals: China Northern Rare Earth Group plans a 50% expansion at Bayan Obo in Inner Mongolia with a $74m investment to boost ore processing capacity for high-tech supply chains. Mongolia’s SOE Reform Push: Mongolia’s “Liberate” policy highlights state-owned enterprise governance reforms, shifting oversight toward parliamentary review for more transparency. Culture & Heritage: The Turkic world agrees on a unified digital database for archaeological heritage through ARICA, with Mongolia among participating countries. Local Business & Events: “Kharkhorum Bazaar” runs Aug. 11–20 near Naadam Stadium, featuring national products, crafts, food, and live cultural programming.

Rare Earth Supply Chain: China’s Bayan Obo rare earth mine in Inner Mongolia is set to expand by 50% with a reported $74m investment, aiming to boost ore processing and strengthen critical-mineral supply for high-tech manufacturing. State Enterprise Reform: Mongolia’s Chinggis Khaan Wealth Fund Holding reviewed SOE reform under the “Liberate” policy, with a new governance law shifting performance oversight toward parliament reviews for more transparency. Mongolia-Belarus Trade Talks: Mongolia’s Foreign Minister met Belarus’s ambassador, discussing practical cooperation in agriculture, light industry, forestry, health, sports, and education. COP17 Land & Water Focus: UNCCD COP17 opens Aug. 17-28 in Ulaanbaatar, with Mongolia pushing its “Steppe Action Agenda” and framing rangelands as a future solution to drought, land degradation, and food-water security. Aviation Connectivity: Air China began the first scheduled international commercial service of the COMAC C919 to Ulaanbaatar (daily route), enabled by bilateral airworthiness arrangements. Fuel Distribution Update: Mongolia’s fuel stabilization team says AI-92 distribution will normalize from Monday as Russian rail deliveries are unloaded and more shipments are en route. Energy Trade Snapshot: Russia’s Inter RAO reported a 4% year-on-year rise in electricity exports in Jan–Jun 2026, with Mongolia among listed supply destinations.

Rare Earth Supply Chain: China Northern Rare Earth Group plans a $74m, 50% expansion of the Bayan Obo rare earth mine in Inner Mongolia to boost ore processing and secure critical-mineral supply for high-tech manufacturing. Fuel & Logistics in Mongolia: Mongolia’s fuel distribution is set to normalize next week after a Russian AI-92 shipment; a rapid response team reports unloading progress and continued rail deliveries, while authorities manage station queues and keep tax-account freezes off fuel importers. Monetary Policy: Mongol Bank raised the policy rate to 12.5% and increased the reserve ratio to 14.5% to curb accelerating core inflation and external price pressures, with fuel and food driving July inflation. Mining & Finance: Erdene reported Q2 2026 results, including 11,709 oz gold produced at Bayan Khundii and progress on the Zuun Mod molybdenum-copper project. Energy Markets: Russia’s Inter RAO increased electricity exports 4% in 1H 2026 while imports fell 5.3%, underscoring shifting cross-border power flows. COP17 & Land Restoration: Mongolia prepares to host UNCCD COP17 (Aug 17–28) with COP17 leadership and a “Steppe Action” agenda focused on rangelands, land-water links, and restoration financing. Wildlife-Friendly Construction: Ulaanbaatar is rolling out training on wildlife-friendly fence standards for green belt and protected areas to reduce barriers to animal movement.

Fuel Supply Watch: Mongolia’s Prime Minister-backed rapid response team says AI-92 gasoline distribution will normalize starting Monday, with railcar unloading already underway and more shipments en route from Russia and aviation fuel arriving from China. Central Banking: Mongol Bank raised the policy rate to 12.5% and increased the reserve ratio, citing accelerating core inflation and external price pressure. Mining & Metals: Erdene reported stronger Q2 2026 performance at Bayan Khundii, while Steppe Gold posted higher revenue in its latest quarter results. Rare Earths: China Northern Rare Earth Group plans a 50% expansion at Bayan Obo in Inner Mongolia to boost ore processing capacity, underscoring critical-mineral supply competition. Aerospace & Trade Links: Air China began a new international route to Ulaanbaatar using China’s C919, a milestone for Mongolia-China connectivity. Land & Pastoralism: Mongolia opened the Global Pastoralist Gathering in Ulaanbaatar, tying rangeland protection to COP17 desertification talks. COP17 Prep: UNCCD COP17 is set to start in Ulaanbaatar next Monday, with Mongolia’s foreign minister leading as COP17 president and Brazil pushing desertification and drought financing themes.

Mongolia Fuel Stabilization: A Rapid Response Headquarters says AI-92 gasoline distribution will normalize starting Aug. 17, with railcar unloading underway and more supply moving from Russia and China to keep Ulaanbaatar and regions stocked. UNCCD COP17 & Land Restoration: Mongolia will host COP17 in Ulaanbaatar from Aug. 17–28, with desertification, drought and rangelands on the agenda, alongside the “Steppe Action” priorities. Mongolian Mining Update: Erdene reported Q2 2026 results, including 11,709 oz of gold from Bayan Khundii and progress on the Zuun Mod molybdenum-copper project. Rare Earth Supply Push: China’s CNREG plans a 50% expansion at Bayan Obo in Inner Mongolia to boost ore processing capacity, underlining critical-minerals competition. Aviation Link to Mongolia: Air China’s C919 completed its first international commercial flights to Ulaanbaatar, signaling China’s growing aerospace reach. Monetary Tightening: Mongol Bank raised the policy rate to 12.5% to cool inflation pressures, including fuel and food-driven costs. Energy & Trade Context: Russia’s electricity exports rose 4% in 1H 2026 while imports fell, with Mongolia listed among destinations.

Rare Earth Supply Chain: China Northern Rare Earth Group is investing about $74m to expand the Bayan Obo rare earth mine in Inner Mongolia by 50%, aiming to boost ore extraction and processing capacity for high-tech demand. Monetary Tightening in Mongolia: The Bank of Mongolia raised the benchmark policy rate to 12.5% and lifted the reserve ratio to 14.5% to curb inflation driven by fuel and food pressures. Fuel & Logistics Pressure: Mongolia is rationing gasoline amid shortages, with reports of overnight queues, while Russia is set to increase emergency fuel supplies. Rail Infrastructure Push: Mongolia’s Bagakhangai–Khushig Valley–Emeelt railway is moving toward a next-month opening, with land clearance and utility relocation underway. Aviation Link to Mongolia: Air China began operating China’s COMAC C919 on the Beijing–Ulaanbaatar route, replacing 737 MAX flights and marking a new step for China’s aircraft exports. AI Data Center Boom (China): Inner Mongolia’s Ulanqab is branding itself as a “capital of tokens,” with electricity demand from data services up sharply and green power used as a key selling point. COP17 Land Agenda: Mongolia’s COP17 on desertification is underway amid emergency austerity and fuel constraints, putting rangeland restoration and drought resilience at the center of policy talks. Wildlife-Friendly Construction: Ulaanbaatar is rolling out standards training for wildlife-friendly fencing to protect animal migration while meeting urban development rules.

Mongolia Monetary Tightening: The Bank of Mongolia raised its benchmark interest rate by 0.5 points to 12.5% and lifted the reserve ratio to 14.5% to rein in 13% July inflation driven by fuel and food costs. COP17 Land & Fuel Pressure: As COP17 opens in Ulaanbaatar, the government imposed austerity and suspended spending to redirect funds to winter preparedness, energy and fuel supplies—amid Ulaanbaatar fuel queues. Rail Delivery Watch: The Bagakhangai–Khushig Valley–Emeelt railway is set to open next month; authorities are rushing right-of-way land clearance and utility protection. School Food Systems: Mongolia, JICA and Darkhan-Uul relaunched a project to improve school food production and service management, with a nationwide evaluation model planned from 2027. Winter Readiness Push: A deputy PM assessed winter preparedness across all 21 aimags, covering fuel reserves, heating, roads and disaster response capacity. Aviation Industry Link: China’s COMAC C919 completed its first scheduled international commercial flight to Ulaanbaatar, using a bilateral airworthiness recognition pathway. Energy & Industry Labor: A new pre-arrival training system for foreign workers targets shortages in Mongolia’s construction, mining, manufacturing and logistics. Rare Earth Supply Chain: China is investing $74m to expand the Bayan Obo rare earth mine in Inner Mongolia by 50%, boosting extraction and processing capacity for critical minerals.

Monetary Tightening: Mongolia’s central bank raised the benchmark interest rate by 0.5 points to 12.5% and lifted the reserve requirement ratio to 14.5% as July inflation hit 13%, driven mainly by fuel and food costs. Rail Infrastructure: The Bagakhangai–Khushig Valley–Emeelt railway (214.9 km) is set to open next month, with authorities accelerating land clearance and utility relocation to keep the schedule. Fuel Security: Mongolia secured extra Russian supplies—25,000 tonnes of AI-92 gasoline and 5,000 tonnes of aviation fuel—while also noting shipments from China and talks to diversify aviation fuel sources. Oil Refinery Push: Cabinet ordered removal of legal bottlenecks for the Altanshiree oil refinery project and backed a 23-day fuel storage reserve, with Bank of Mongolia loans exceeding MNT 360 billion. Aviation & Trade Links: Air China’s C919 completed its first scheduled international commercial flight to Ulaanbaatar under bilateral airworthiness recognition, starting daily Beijing–Ulaanbaatar service. Labor Mobility: A new pre-arrival training and preliminary interview system for foreign workers is being used to address shortages in construction, mining, industry, agriculture, logistics, and services. COP17 Prep: As COP17 approaches in Ulaanbaatar, the government is also dealing with a fuel crisis and emergency austerity measures.

Aviation & Trade Links: Air China’s COMAC C919 (CA723/CA724) completed its first scheduled international commercial passenger flight from Beijing to Ulaanbaatar, landing with a water-salute ceremony—an important test of Mongolia’s acceptance of Chinese airworthiness standards and a new step for China’s push to compete with Boeing/Airbus. Energy Security: Mongolia moved to stabilize supply amid shortages, securing additional Russian fuel shipments (25,000 tonnes AI-92 and 5,000 tonnes aviation fuel) and reporting customs clearance progress, while the Cabinet also ordered removal of legal bottlenecks tied to the Altanshiree oil refinery buildout and a 23-day fuel reserve plan. Oil Refining & Industry: Mongolia’s PM visited the India-facilitated strategic oil refinery site, praising the 3,700-strong Indian workforce and signaling plans to grant the project technological industrial park status as construction reaches about 60%. Winter Readiness: The Deputy PM assessed winter preparedness across all 21 aimags, covering hay/fodder, livestock health, water, heating, fuel reserves, roads and disaster response capacity. Food Systems: Education and JICA relaunched a school lunch management and food production support project with a unified oversight model, starting in Darkhan-Uul in Jan 2027. Critical Minerals & Policy: Mongolia-China COP17/UNCCD preparations advanced, with Mongolia proposing three initiatives and seeking China’s support for a desertification prevention cooperation center.

Energy Security & Fuel Supply: Mongolia is rationing gasoline as fuel shortages push drivers into long lines, with authorities limiting purchases by license plate and capping volumes. Russia-Mongolia Energy Deal: Russia has agreed to ship extra fuel by end-August—25,000 tons of AI-92 gasoline and 5,000 tons of jet fuel—aimed at ending the need for rationing. Strategic Oil Refinery Progress: Mongolia’s PM visited the India-facilitated strategic oil refinery construction site in Dornogovi; the project is reported 60% complete and is set to receive Technological Industrial Park status. Mining & Gas-to-Power Momentum: TMK Energy says gas output at its Gurvantes XXXV coal seam gas project in southern Mongolia is rising toward commercial milestones, alongside engineering work for a gas-to-power pathway. COP17 Desertification Push: Mongolia and China discussed COP17 preparations under the UNCCD, including a “Steppe Action Agenda” and a China-Mongolia desertification prevention cooperation center. Critical Minerals Expansion: China’s Bayan Obo rare earth mine in Inner Mongolia is expanding by 50% with a $74m investment to boost extraction and processing capacity. Mining Tech for Safety: Sandvik launched xCell Banshee and xCell Hydra digital ground support tools in Ulaanbaatar to monitor rock-bolt performance and improve mine safety. AI Infrastructure Hiring: DeepSeek posted civil engineering and energy-related jobs for data center buildouts across Beijing, Hangzhou, and Ulanqab, signaling deeper in-house infrastructure expansion.

Fuel Security in Focus: Mongolia is rationing gasoline in Ulaanbaatar and beyond as long lines grow, with purchases limited and sales tied to odd/even license plates; officials say supplies should improve from mid-August. Russia–Mongolia Energy Deal: Mongolia says Russia agreed to ship extra AI-92 gasoline (25,000 tons) and jet fuel (5,000 tons) by end-August to ease shortages. Strategic Refinery Progress: Prime Minister U. Uchral visited the Dornogovi oil refinery site, thanking India for support; construction is reported at 60% with a push to complete and grant “Technological Industrial Park” status. Mining & Energy Tech: Sandvik launched xCell® Banshee and xCell® Hydra for digital ground support monitoring in Ulaanbaatar. COP17 Desertification Push: Mongolia’s “Steppe Action Agenda” and three initiatives (rangelands, land-water management, nature-based infrastructure) are being lined up for COP17, with China backing the UNCCD conference and a feasibility study for a China–Mongolia cooperation center. Global Pastoralism Gathering: Mongolia and FAO co-host a Global Pastoralists Gathering and Conference with delegates from 102 countries.

Fuel & Energy Security (Mongolia-Russia): Mongolia says Russia agreed to ship extra fuel to ease shortages: 25,000 tons of AI-92 gasoline and 5,000 tons of jet fuel by end-August, with the minister saying it should remove any need for rationing. Fuel Shortage (Domestic measures): Mongolia has imposed an even-odd license plate gasoline sales system from Aug. 4 and capped purchases at MNT 50,000 per transaction, as long lines persist and officials link the crunch to global market instability. Power & Infrastructure (Thermal plant): A 70 MW thermal power plant has been launched ahead of the winter peak, with commissioning starting as demand rises. Oil Refining Push (Project oversight): The prime minister inspected Mongolia’s Dornogovi oil refinery construction and laid out a 10-point oversight plan to cut import dependence, with progress reported at about 60%. Mining & Industry (Digital ground support): Sandvik unveiled xCell® Banshee and xCell® Hydra at a caving conference in Ulaanbaatar to monitor rock bolt performance and ground behavior in real time. Construction & Storage (Fuel depots): Eighteen firms are building 22 petroleum storage facilities in Ulaanbaatar, including a 16,000 m³ site due by Aug. 20 and a planned 100,000 m³ complex. Critical Minerals (China rare earth): China is expanding the Bayan Obo rare earth mine in Inner Mongolia by 50% to boost ore processing capacity, reinforcing supply security for high-tech manufacturing. Environment & Land Use (Desertification): Incheon’s “Forest of Hope” partnership is set to be showcased as a UNCCD benchmark, highlighting long-term steppe greening tied to municipal action. AI & Renewables (China data centers): Envision’s Galaxy Campus in Ulanqab is now operational, targeting gigawatt-scale renewable-powered AI infrastructure.

AI & Data Centers in Inner Mongolia: Envision Group opened China’s biggest AI industrial park in Ulanqab, built around its Galaxy Campus (120,000 sq m) and positioned to scale beyond 2GW, with renewables and major tech demand already in the mix. Mongolia Fuel Security: Mongolia is still hit by fuel shortages; gasoline sales moved to an even-odd license plate system (MNT 50,000 cap per transaction) as imports remain heavily dependent on Russia, with supply expected to improve from mid-August. Energy Infrastructure (Mongolia): Initial testing has started on a new 70 MW thermal power plant in Sukhbaatar, Selenge, with commissioning targeted for October to ease winter electricity and heating shortages. Capital Housing & Urban Services: Ulaanbaatar City Council approved the “Selbe Smart City” special economic zone, covering 158 hectares and aiming for 45,000 residents and about 16,000 jobs by 2029. Fuel Storage Buildout (Mongolia): Construction is underway on 22 petroleum product storage facilities, with 18 enterprises involved; some are expected to be operational within days to stabilize AI-92 supply in the capital. Critical Minerals Race (China): Beijing is expanding Bayan Obo output from 10M to 15M tons annually, boosting iron and supporting critical rare-earth strategy amid US-China rivalry. Sports & Business Spotlight: Ulaanbaatar MMC Energy remains a top FIBA 3x3 contender heading to Lausanne, while Mom’s Touch passed 20 stores in Mongolia, signaling fast-food growth via local supply chains.