Ulaanbaatar

The Mongolian government has announced a major decision in its economic reform strategy: the privatization of 18 state-owned enterprises through the issuance of additional common shares and their public offering or expanded listing on the stock exchange.

This initiative marks a structural turning point for Mongolia’s economy, with the stated objectives of:

strengthening transparency and corporate governance in state-owned enterprises;
attracting private investment, both domestic and foreign;
invigorating the Mongolian financial market;
reducing the state’s budgetary dependence.

Strategic sectors concerned

The entities involved span key sectors of the national economy:

Telecommunications and finance

Mongolian Telecommunications
Mongolian Stock Exchange
State Bank
National Reinsurance

Energy and infrastructure

Shivee Ovoo
Baganuur
Dulaani III & IV Power Plants
Erdenet, Darkhan and Amgalan Thermal Power Plants
Dornod Regional Energy System

Natural resources and strategic industries

Erdenes Tavan Tolgoi
Erdenes Factory
Erdenes Critical Minerals

Transport and agriculture

MIAT (national airline)
Agricultural Exchange
Agricultural Corporation

A controlled opening of public capital

According to the authorities, privatization does not imply a full withdrawal of the state, but rather a gradual opening of public capital, enabling:

improved financial discipline;
access to private capital;
more efficient management of public assets.

This approach aligns with trends observed in several emerging Asian economies, aiming to modernize state-owned enterprises without dismantling them.

A strong signal to international investors

For investors, the announcement sends a powerful political and economic signal, particularly in:

mining and critical minerals;
energy;
financial services;
strategic infrastructure.

It confirms Mongolia’s ambition to position itself as a more open, well regulated economy integrated into international markets, while retaining strategic control over its key assets.

List of companies concerned

Today, the Government of Mongolia announced its decision to privatize the following 18 state-owned legal entities through the issuance of additional common shares and their public sale on the stock exchange:

“Mongolian Telecommunications” JSC
“Agricultural Exchange” LLC
“National Reinsurance” JSC
“Mongolian Stock Exchange” JSC
“Agricultural Corporation” LLC
“Shivee Ovoo” JSC
“Baganuur” JSC
“MIAT” JSC
“State Bank” JSC
“Erdenes Tavan Tolgoi” JSC
“Erdenes Factory” JSC
“Erdenes Critical Minerals” JSC
“Dulaani III Power Plant” JSC
“Dulaani IV Power Plant” JSC
“Erdenet Thermal Power Plant” JSC
“Dornod Regional Energy System” JSC
“Darkhan Thermal Power Plant” JSC
“Amgalan Thermal Power Plant” JSC

✍️ By Kadir Duran
Bruxelles Korner