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AMENDMENTS TO THE INVESTMENT LAW TO STRENGTHEN MONGOLIA’S INVESTMENT CLIMATE

Today, the Government of Mongolia submitted the draft Law on Business Freedom to the State Great Khural (Parliament), accompanied by amendments to 99 laws, including significant revisions to the Law on Investment. The proposed amendments aim to enhance Mongolia’s investment climate by improving regulatory certainty, strengthening investor protections, reducing administrative barriers, and ensuring a more stable, transparent, and business-friendly environment.

Key measures include tax stabilization certificates for large-scale investments exceeding MNT 100 billion for up to 20 years, customs duty exemptions for renewable energy, data center, and AI-related imports, and a reduction in withholding tax on interest income from 20 percent to 5 percent for financial institutions and investment funds.

The reforms also guarantee access to international arbitration for investment disputes, strengthen investor grievance mechanisms, and align the legal framework with international best practices.

Overall, these amendments are designed to increase investor confidence, attract long-term investment, and strengthen Mongolia’s competitiveness as an investment destination.

Videos from Shanghai now available

https://capitalmarkets.mn/events/shanghai-2026?tabValue=videos

The AI summary is missing this:

https://president.mn/en/2026/04/22/mongolia-kazakhstan-sign-18-cooperation-documents-in-various-fields/

Memorandum between the Ministry of Industry and Mineral Resources of Mongolia and the Ministry of Energy of the Republic of Kazakhstan on Cooperation in the Petroleum Sector (...) The sides will cooperate in oil exploration, production, petroleum product supply, logistics, and refining. Kazakhstan will also work toward stable long-term supplies of crude oil, gasoline, and diesel fuel.

Mongolia wants to fill the missing crude gap also via Kazakhstan, so they don't rely on one supplier only.

@abzzba thanks for the doc! Already sitting on my desk printed and bound for bedtime reading ha

@master82 if you question is genuine, wouldn't all of this be answered in annual accounts for you?

https://www.petromatadgroup.com/investors/reports-and-presentations/

https://www.petromatadgroup.com/wp-content/uploads/2025/06/Petro_Matad_Limited_Annual_Report_2024.pdf

Page 67 - Revenues and expenses

For the reporting period 2024:

REVENUES

Oil sales revenue after accounting for cost of goods sold - $454,000

Interest and other income - $194,000

EXPENSES

Depreciation - $463,000

Employee expenses - $2,271,000

Exploration - $5,004,000

Administration costs - $1,043,000

SunSteppe costs - $1,738,000

PSC administration costs - $201,000

Production bonus - $500,000

Audit fees - $64,000

Travel expenses - $116,000

Total costs: $11,440,000 for FY24

Now if you want some factual ammunition for heated posts, we can kick off about the production bonus, accuse PM of travelling to Italy in private jet and expensing it to PM, and we can trash Sunsteppe costs until the trashing effort creates so much renewable electricity that Ulaanbaatar will be free of blackouts forever!

One insightful thing from page 52 is for example that the act of raising $9,390,000 costs us $557,000 (6%).

I am looking forward to the day where this part of the incentive plan from page 76 will be triggered:

50% vest on the Company achieving the sale of 1 million barrels of oil, estimated by management as being by 31 December 2026

The accounts for FY25 could be with us by end of this month, so we can have more fun then!

@Proquo I don't blame you, it's totally understandable. I am just thinking what would be the "most correct" approach to CEO comms in this scenario? If any of us became PM CEO, how would we change the communication? Assuming that Mike has done the necessary work from his side on time and in completeness, what would be a better way to communicate with investors?

I can't think of anything sensible... The only true communication from him would have to be "we have done what we should have as far as we know and I can't tell you more now, we think there is only one step left and that is up to Petro China/farm out partner/government etc, unless they come back with something we don't expect."

I don't mean this in a provocative way, just genuinely curious if there is a better way to do the comms here given the situation.

@ManxKippers "Envoi advertising for partners now, clearly at the instruction of the board, just emboldens that sense of distance from any deal being done soon or there even being a deal that is close."

Envoi has been advertising for partners at least since 2020 (the date of the first flyer on the site), so update of info is neither negative nor positive, and I would assume any updates to the text will be happening until both farmouts are completed, perhaps even afterwards to keep potentially interested parties close.

2/2

What made Shanghai particularly meaningful was seeing both sides genuinely interested in building long-term partnerships.

Not transactional relationships.

Not short-term commodity trades.

But real industrial cooperation.

A day before the Forum, we visited Huawei’s global R&D center. For many in the Mongolian delegation, it was a glimpse into how rapidly technology, AI, digital infrastructure, and clean energy systems are advancing in China — and a reminder that Mongolia must think much bigger about innovation and productivity if we want to compete globally.

The Mongolian delegation was led by Members of Parliament Zoljargal Jargalsaikhan and Lodoisambuu Chuluunbileg, alongside Batkhuu Idesh, State Secretary of the Ministry of Economy and Development, and Bold Dorjderem, Consul General of Mongolia in Shanghai.

We are deeply grateful for their support, along with our Global Partner Huawei; sponsors Rio Tinto, Envision Energy, and MCS International; and all our presenting partners and supporters who helped make this possible.

We started this global forum series in New York.

Then London.

Then Singapore.

Now Shanghai.

And after what we witnessed last week, we believe Shanghai will become one of the most important annual platforms for Mongolia in the years ahead.

Because the conversation around Mongolia is changing.

Increasingly, it is becoming a conversation not only about minerals but about energy, technology, manufacturing, and long-term strategic partnership.

Slides presented available here. Videos yet to come

https://docs.qq.com/s/h71_z-m8S1NMSLmxo1x1MG?utm_source=cmm-capital.beehiiv.com&utm_medium=newsletter&utm_campaign=shanghai-was-different&_bhlid=c180207c21615827ec88d52f23f7a0a1d3fee987

Shanghai Was Different

Last week, we hosted our first-ever Mongolia Investment Forum in Shanghai.

And honestly, this one felt different.

More than 300 participants from over 200 companies joined us at the Grand Hyatt Shanghai — from China, Hong Kong, Singapore, Korea, and Australia. We brought together investors, industrial groups, energy companies, technology firms, policymakers, and over 35 Mongolian companies and institutions.

But this was never just about hosting another conference in another city.

Shanghai was a deliberate choice.

The global conversation around Mongolia is changing. It is no longer only about mining. Increasingly, it is about how critical minerals connect with AI, clean energy, industrial modernization, and advanced technology.

And if that is the future, Mongolia needs to be where the capital, technology, and industrial capacity already are.

That is why we came to Shanghai.

Throughout the Forum, one thing became very clear: Chinese interest in Mongolia is evolving fast.

Not just as a buyer of minerals — but as a long-term partner in energy, infrastructure, manufacturing, and technology.

One of the strongest signals came from the deals signed during the Forum.

Huawei Technologies and Shunkhlai Holding agreed to jointly develop utility-scale solar and battery storage projects in Mongolia using smart grid-forming technologies designed for unstable power systems.

Envision Energy and MCS International signed an agreement to cooperate on renewable energy solutions and technology transfer.

And in manufacturing, Stairway and TZME of Tianjin launched a joint venture — Gobi Metal Systems — to bring heavy industrial fabrication closer to Oyu Tolgoi in Umnugovi.

Three agreements.

Two focused on green energy.

One focused on manufacturing.

Together, they pointed toward something bigger:

Mongolia moving beyond simply extracting resources toward building industrial and energy capacity around them.

That theme carried throughout the entire Forum.

Panels focused on mining and critical minerals, industrial modernization, energy transition, and emerging technology. BloombergNEF moderated conversations between executives from Huawei, AIIB, Envision Energy, and Mongolian business leaders on how Mongolia can modernize its economy while solving one of its biggest constraints: power.

Because today, Mongolia’s biggest growth bottleneck is no longer geology.

It is electricity.

Grid instability, shortages, and lack of infrastructure are increasingly becoming the limiting factor for mining, industry, and urban development.

And many Chinese companies see that gap not as a risk but as an opportunity.

What made Shanghai particularly meaningful was seeing both sides genuinely interested in b

Envoi site updated https://envoi.co.uk/projects/active-projects/asia/mongolia/

Https://www.theguardian.com/world/live/2026/jun/01/iran-war-live-news-updates-kuwait-missile-drone-attack-us-strikes-iran-radar-sites

Iran says there will be no peace talks with the US until its demands on the cessation of Israeli operations in Lebanon and Gaza are met, according to the IRGC-affiliated Tasnim news agency.

Tasnim reported that Iran’s negotiating team is pulling out of message exchanges through mediators with the US over Israel’s offensive in Lebanon.

Tasnim further reported that Iran and what it called its “resistance front”, or proxies, will look to completely block the strait of Hormuz. It said it will also look to “activate” other fronts, including the Bab el-Mandem strait, which sits off the coast of Yemen, across the Arabian peninsula from the strait of Hormuz.

The Houthis, an Islamist armed group that controls large parts of Yemen, are allies of Iran – they have previously targeted shipping in the Red Sea and likely the “resistance” referred to by Iran in the statement.

@TenBagTag I posted my questions here earlier, in my history I only see part 2/2 from 13 May 2026 09:31, it appears the first section has been deleted by LSE admin for some unknown reason.

Correction, only very few questions are answered there, only those from the call seem to be there, none of those I sent via email are showing, I have sent a question to PM IR to ask if they will be added

Https://www.investormeetcompany.com/meetings/annual-general-meeting-225

Questions now answered fully here

Https://energy.gov.mn/post/175713

Energy Minister met with the World Bank's Director for Infrastructure for East Asia and the Pacific Region, and others discuss cooperation.

Meanwhile, the World Bank's Director for Infrastructure for East Asia and the Pacific, Sudeshna Ghosh Banerjee, noted the active cooperation with the Republic of Mongolia in the energy sector in recent years, mentioning opportunities for cooperation in energy reforms, infrastructure enhancement, and system rationalization, and clarified the policies to be pursued in the coming years.

Minister B. Naidala thanked the World Bank for its cooperation and support in many sectors, adding, "The policies of the previous Government have been stable. And we've set out to do nine things with one policy, three principles, and we've already started some of them. Mongolia intends to present its energy transition strategy in the near future. A strategic hydrogen project is being prepared," he said, adding that he was briefed on the nine works mentioned above. This includes attracting investment, making energy systems smarter, increasing renewable resources, introducing new technologies, improving the capacity and training of professionals, increasing infrastructure, improving governance, and legal and legal reforms, he said.

He also noted that when the auditions for the construction of solar power plants and batteries in the five provinces were announced for the first time, 115 companies had submitted applications to participate, and the contractors were selected and the contractors were scheduled to be selected by July 1 next year. He noted that there is a strong interest from investors and plans to open an open call for projects that will provide power to the belts and arrows in the future, which will focus on the construction of power transmission lines and infrastructure.

In addition, the minister noted that in the future, the Republic of Mongolia has ambitions not only to meet domestic consumption, but also to export energy, and to develop an industry based on electricity sources across borders. On the part of the bank, he agreed to advise on the Mongolian Strategic Energy Transition Plan. It also expressed its focus on digital transition and human resource capacity, and announced that it would seek funding and technical assistance for other projects proposed by Energy Minister B. Naidalaa.

The Bank is working with Mongolia to strengthen the reliability of electricity supply, transmission network capacity, renewable energy integration, and institutional capacity in the energy sector of the Republic of Mongolia. The "Energy Project-2" implemented by the bank earlier is aimed at improving the reliability and stability of our country's electricity supply. Currently, the "Energy Project-3" or "220 kV TsDASH and Substation Expansion Project on the Baganur-Choir Route" (...)

@TenBagTag there are two things. New 3D seismic, and existing seismic, which is being re-processed.

https://www.petromatadgroup.com/operations/block-xx/

Seismic and Geological Data:

3,500km of 2D seismic (300km reprocessed in 2018/19), 133km2 3D seismic acquired over Davsan Tolgoi and access to 60 km2 of PetroChina 3D seismic over northern part of the block

Full coverage of land based gravity surveys at 2-4km intervals

...is live

https://www.investormeetcompany.com/meetings/annual-general-meeting-225

Https://energy.gov.mn/post/175674

Energy Minister B. Naidala received members of the European Parliament today. At the beginning of the meeting, the Member of the European Parliament and Chairman of the Group of Representatives, Jussy Princi, expressed gratitude for the reception and expressed the desire of European countries to expand cooperation in the energy sector.

Minister B. Naydala informed him about the planned approval of the Energy Transition Strategy of the Republic of Mongolia, as well as the reforms and policies being pursued in the sector. He said, "Mongolia is working to address the challenges facing the energy sector. We aim to do nine things within one policy and three principles. For example, the focus is on increasing resources, increasing the distribution of resources, introducing new technologies, attracting investment, and improving the governance of sectoral and state-owned companies.

It is hoped that new technologies will be available in European countries that will suit Mongolia's unique characteristics. I'm looking for opportunities to experiment with them. We are looking to introduce a regulatory testing environment in the energy sector." In addition, the Ambassadors Extraordinary and Plenipotentiary of the Republic of Mongolia from European countries to the Republic of Mongolia, representatives of banks and financial institutions, clarified that they are focused on expanding cooperation.

Members of the European Parliament have received clarifications and answers on how they plan to make the energy transition more efficient, and how they are capturing their energy capacity in this regard.

As Minister, B.Naidala emphasized his desire to cooperate with European countries in short- and long-term training and internships aimed at improving the skills of professionals in the sector. Mongolia's lower energy prices are a challenge, and he said he would work on changes that would inspire the public to save consumption, and that he would increase renewable sources using his abundant solar and wind resources.

According to Tashram, the European Union has been actively cooperating in the energy sector of the Republic of Mongolia in recent years in the direction of green transition, energy efficiency and sustainable development. This collaboration is mainly in the form of technical assistance, policy support, research, and capacity-building.

Https://capitalmarkets.mn/insight/179 - Shanghai event over

More than 35 Mongolian companies and institutions were represented, including Development Bank of Mongolia, Trade and Development Bank, Khan Bank, Shunkhlai Group, Stairway, Khan Altai Resource, Fingate Financial Group, State Bank of Mongolia, MMS Engineering LLC, Invescore Capital, Apex Capital, Golomt Capital, Sendly NBFI, and Ride Mongolia, among others.

Capital markets mongolia published an informative newsletter

https://capitalmarkets.mn/insight/178?utm_source=cmm-capital.beehiiv.com&utm_medium=newsletter&utm_campaign=mongolia-s-off-budget-renewable-energy-pivot&_bhlid=6aa30f5fd71d7925a543fcee62f71c497df57c30

And the Shanghai meetings are in progress, will post videos once available, there are some heavy-hitters in attendance