Another Emergency Fix for Mongolia’s Coal Behemoth
- Mongolia Weekly
- Jul 31
- 3 min read
A top-down overhaul of Erdenes Tavan Tolgoi coal mine in Mongolia repeats past patterns—cost-cutting orders, cabinet envoys, and little sign of lasting reform.
Mongolia’s cabinet has reasserted direct control over Erdenes Tavan Tolgoi (ETT), the state-owned coal giant, in early July 2025 by imposing a new ‘special regime’ and appointing a special cabinet envoy to oversee its operations.
Following that decision, Prime Minister Gombojavyn Zandanshatar visited the ETT and instructed to slash costs, boost exports by 50%, and subject every contract for review.
Yet despite this muscular, top-down intervention—a familiar pattern now—the diagnosis for ETT's deep-seated ailments remains political capture and poor governance. This latest 'special regime,' for all its forceful rhetoric, risks serving as merely another temporary patch, a potent painkiller that masks the underlying illness rather than delivering a lasting cure.
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