From Policy to Capital: Mongolia’s Role in the Global Energy Transition
https://www.youtube.com/watch?v=NAiF7nS5fGc
[00:05] All right, thank you for the very interesting presentation, Mr. Marius.
[00:10] Um, we will now move to our first panel discussion from policy to capital, Mongolia's role in the global energy transition.
[00:16] This session will be chaired by Mr. Josh Satderfield, chief strategy officer at Latitude Energy, who brings nearly two decades of experience at the intersection of government, business, politics, and media.
[00:28] Joining him on the panel are Mr. Dorchan Tugmid, Deputy Prime Minister of Mongolia as well as Mr. Maria Stan.
[00:34] We invite all our panelists to the stage.
[00:46] Well, first of all, yeah, thank you for Capital Markets Mongolia for organizing this uh for Stone X and for Gollum Bank for co-hosting as well and helping to organize this.
[00:57] Um and then thank you to our panelists for joining.
[01:00] Uh first of all I kind of wanted to ask questions about you know the current stage of things um or status of things in
[01:06] things um or status of things in Mongolia.
[01:10] Um so you know we've heard a lot about the abundant resources that are available in Mongolia.
[01:15] Uh my understanding is that um estimates place you know GDP growth in Mongolia at 5 to 5.7% for 2026.
[01:25] Um just since the last conference we had here uh here in New York, what changes have you seen in terms of appetite?
[01:32] What changes have been made in terms of policy um to meet kind of the growing demand there?
[01:39] We've been to New York last year and then we have introduced the uh potential the energy sector in Mongolia and and now uh what is going on is that a lot of development has been happened and u
[01:52] number one yes economy was good in the region Mongolia economy has been keeping like very high economic growth at the rate of around six to 7% you know so this is going on and the Secondly, as
[02:07] this is going on and the Secondly, as Jula mentioned that a lot of investors
[02:10] Jula mentioned that a lot of investors have been visiting us and also show the interest to invest in energy sector
[02:14] have been visiting us and also show the interest to invest in energy sector Mongolia
[02:17] interest to invest in energy sector Mongolia
[02:18] Mongolia and also the the like uh the EBR
[02:24] and also the the like uh the EBR European Investment Bank and so for they have committed to fund like two billion
[02:26] European Investment Bank and so for they have committed to fund like two billion US dollar directly to the energy sector
[02:29] have committed to fund like two billion US dollar directly to the energy sector in Mongolia.
[02:32] US dollar directly to the energy sector in Mongolia.
[02:33] in Mongolia.
[02:33] So this is uh going on and uh the most importantly the bigger size of skilled the investors already in Mongolia and
[02:39] So this is uh going on and uh the most importantly the bigger size of skilled the investors already in Mongolia and
[02:41] importantly the bigger size of skilled the investors already in Mongolia and
[02:44] the investors already in Mongolia and last year in September aqua power from the Saudi Arabia you know they visited Mongolia and confirmed that they will start investing like a 10 gawatt the energy together with like a $5 billion uh green hydrogen project you And then
[02:47] last year in September aqua power from the Saudi Arabia you know they visited Mongolia and confirmed that they will start investing like a 10 gawatt the energy together with like a $5 billion uh green hydrogen project you And then
[02:50] Mongolia and confirmed that they will start investing like a 10 gawatt the energy together with like a $5 billion uh green hydrogen project you And then
[02:52] confirmed that they will start investing like a 10 gawatt the energy together with like a $5 billion uh green hydrogen project you And then
[02:56] start investing like a 10 gawatt the energy together with like a $5 billion uh green hydrogen project you And then
[02:59] energy together with like a $5 billion uh green hydrogen project you And then
[03:01] uh green hydrogen project you And then
[03:03] green hydrogen project you And then through this project at least 50,000 the green job will be created and uh so
[03:06] through this project at least 50,000 the green job will be created and uh so
[03:09] The green job will be created and uh so that is the deal is going on but.
[03:12] That is the deal is going on but unfortunately today because of the crisis in the Middle East the war is going on and those the countries like uh Saudi Arabia Emirates and Bahin they a little bit busy order and we don't understand it but also we have agreed with the government of Emirates as well as the Bahin in uh to to implement the sizable project in Mongolia, not only energy sector but also the mining areas as well and this uh deal actually actively going on and we expecting to have a good result so far.
[03:49] So this is going on and uh now you see this uh the war is going on because of this energy guys.
[03:59] All 100 years 100 years all the war has been happen because of the energy and so today uh Mongolia is positioning like in a good way is.
[04:12] positioning like in a good way is because uh you see the because uh you see the the increase of the oil price actually.
[04:18] the increase of the oil price actually giving a lot of impacts to all of the entire countries except those export the oil you know so those countries are very few but most of the countries are at this stage to invest in energy sector and have to diversify the source of the energy and and as we see clearly that China for example is observing this shock in very smooth way because they have invested like uh more on clean energy green energy and 40% of the energy source in China is now renewables you know so in this regard yes even though they import oil from the Middle East but still uh they do have a good reserve at the same time also they keep they had a good investment in uh in a green energy.
[05:08] So while how Mongolia will
[05:12] green energy.
[05:14] So while how Mongolia will be positioned for example is because we be positioned for example is because we do have a lot of resource as we mentioned like 3.2 two trillion that terawatt resource we have very cheap very reliable and uh the countries like China East Asia like Japan and Korea do have a lot of demand and still they do have a lot of interest going on so the the the bigger size of the project is very feasible to be implemented in the medium and long run so this is the so far the development is going Thank you.
[05:48] Great. Thank you so much. Um, this next question is from Marius.
[05:53] I was just wondering what are some of the current misconceptions that people might see uh regarding investments and opportunities and projects in Mongolia?
[06:04] I think Mongolia's and Central Asia in general is a highly uh attractive uh opportunity for global investors anywhere.
[06:11] uh uh there is capital uh
[06:15] anywhere. uh uh there is capital uh there is capital that should be deploy.
[06:17] there is capital that should be deploy is looking to be deployed especially in economies that are growing very fast uh.
[06:20] is looking to be deployed especially in economies that are growing very fast uh.
[06:23] economies that are growing very fast uh the deputy prime minister mentioned uh.
[06:25] the deputy prime minister mentioned uh the the GDP growth in Mongolia that's it's growing far faster uh compared to other countries around the world so of course investors are uh paying attention and taking notice of uh that fast uh economic growth uh.
[06:28] the the GDP growth in Mongolia that's it's growing far faster uh compared to other countries around the world so of course investors are uh paying attention and taking notice of uh that fast uh economic growth uh.
[06:31] it's growing far faster uh compared to other countries around the world so of course investors are uh paying attention and taking notice of uh that fast uh economic growth uh.
[06:33] other countries around the world so of course investors are uh paying attention and taking notice of uh that fast uh economic growth uh.
[06:36] course investors are uh paying attention and taking notice of uh that fast uh economic growth uh.
[06:39] and taking notice of uh that fast uh economic growth uh.
[06:43] economic growth uh what can uh uh accelerate even further uh is the investment projects that some of them uh we've seen on the slides that were presented uh uh earlier.
[06:46] accelerate even further uh is the investment projects that some of them uh we've seen on the slides that were presented uh uh earlier.
[06:49] investment projects that some of them uh we've seen on the slides that were presented uh uh earlier.
[06:50] we've seen on the slides that were presented uh uh earlier. Uh but the issue is uh how do you mobilize that uh uh capital?
[06:53] presented uh uh earlier. Uh but the issue is uh how do you mobilize that uh uh capital?
[06:56] issue is uh how do you mobilize that uh uh capital? How do you attract it? How do you make sure that uh some of the institutional money that is in New York, that is in London, that is in Europe finds its way uh into Mongolia?
[06:58] uh capital? How do you attract it? How do you make sure that uh some of the institutional money that is in New York, that is in London, that is in Europe finds its way uh into Mongolia?
[07:01] do you make sure that uh some of the institutional money that is in New York, that is in London, that is in Europe finds its way uh into Mongolia?
[07:03] institutional money that is in New York, that is in London, that is in Europe finds its way uh into Mongolia?
[07:05] that is in London, that is in Europe finds its way uh into Mongolia?
[07:09] finds its way uh into Mongolia? And this is why I think uh um you know structures like this that offer diversified uh
[07:13] is why I think uh um you know structures like this that offer diversified uh
[07:16] like this that offer diversified uh access could work very well in um we've seen uh uh the opportunities for investments in the hydropower sector.
[07:25] hydro power is such a valuable um asset right then if you look at countries in the European Union if you look at countries around the world it's very difficult for governments to take decisions to move forward with hydropower projects no matter how critical they are to the uh energy transition uh to the uh energy demand to securing uh independence of uh um for for local uh consumption to ensure that there is no supply disruption.
[08:02] Uh in Europe is almost impossible to do that.
[08:03] I've seen it in Romania.
[08:06] We own the largest uh hydropower plant or hydropower company in the country which we IPOed in 2023 was the third largest IPO in the world that year.
[08:14] Um but
[08:17] IPO in the world that year.
[08:19] Um but they're not able to grow.
[08:19] So the only way that they can create value is by looking at other uh renewables.
[08:24] Whereas in Mongolia, in Usbakistan as well, uh the governments are taking bold decisions.
[08:29] They understand that you know they have to think 15 20 years ahead what is the uh energy demand going to look like and they want to reduce in uh their dependence on uh imports.
[08:43] So I think um you know you asked about uh what could be uh um a misconception from investors.
[08:52] You know I I I don't think there is a misconception.
[08:54] I think there is a uh there is no understanding of what the opportunities are uh in uh these countries and especially in uh uh Mongolia.
[09:08] So events like this uh uh uh go a very long way to promoting um awareness of what is available.
[09:13] I mean what uh uh investor wouldn't want to participate uh uh in uh building a hydro
[09:20] participate uh uh in uh building a hydro power plant in uh Mongolia because uh.
[09:24] power plant in uh Mongolia because uh once you've built that uh dam you have.
[09:26] once you've built that uh dam you have the water this is uh for the next 100.
[09:29] the water this is uh for the next 100 years the com that company or that.
[09:32] years the com that company or that investment is going to be generating uh.
[09:34] investment is going to be generating uh uh cash flow.
[09:37] So I'm very uh pleased to see uh this type of investment.
[09:39] see uh this type of investment opportunities in uh the country.
[09:42] now is opportunities in uh the country.
[09:45] now is about finding a way to structure uh and to find that capital for uh find.
[09:47] to find that capital for uh find completing these investments.
[09:49] completing these investments.
[09:52] Thank you.
[09:52] And then a follow up on that um for the minister um what I guess what is being done to kind of raise awareness.
[09:58] for these opportunities right now?
[10:04] Well um.
[10:08] uh well we do have the resources and but.
[10:11] uh well we do have the resources and but at the same time also we have a shortage.
[10:14] at the same time also we have a shortage of the energy rate as we do import like.
[10:17] of the energy rate as we do import like 25% of the energy from both Russia and China this time.
[10:20] So this is uh little.
[10:24] China this time.
[10:27] So this is uh little funny but uh the what kind of funny but uh the what kind of opportunities opportunities we do have is that yes we do have the we do have is that yes we do have the two gawatt demand for next two gawatt demand for next two to three years for duckly and uh so.
[10:41] So we are announcing very nice uh the auctions and offering the PPA you know with the good condition in the longer run and uh very open and we are doing it together with some IFIs include the EBR etc. IFC and and also government is very much committed to organize it as well.
[11:03] So in order to meet the demand for next two years we are actually uh very open for everyone who actually have interest in this uh sector including the hydrop power as well.
[11:19] So well hydropower project for example it will it is very crucial important and yes it will generate the cash flow in the longer run.
[11:26] generate the cash flow in the longer run but uh it will take some time to build.
[11:28] but uh it will take some time to build the dam etc.
[11:31] Well uh we are the the dam etc.
[11:31] Well uh we are the government of Mongolia is very much now concerning about the build uh the back rest you know because last year we had some curtailment and this year we believe that because Mongolia is very cold you know in the winter time and so the urgent the investment what we are looking for is the to park more the uh by rest you know so this is quite often And it will be often auctions for everyone for this year and um for the rest like upcoming years.
[11:33] government of Mongolia is very much now concerning about the build uh the back.
[11:36] concerning about the build uh the back rest you know because last year we had some curtailment and this year we.
[11:40] rest you know because last year we had some curtailment and this year we.
[11:42] some curtailment and this year we believe that because Mongolia is very.
[11:43] believe that because Mongolia is very cold you know in the winter time and so.
[11:46] cold you know in the winter time and so the urgent the investment what we are.
[11:49] the urgent the investment what we are looking for is the to park more the.
[11:55] looking for is the to park more the uh by rest you know so this is quite.
[11:59] uh by rest you know so this is quite often And it will be often auctions for.
[12:01] often And it will be often auctions for everyone for this year and um for the.
[12:06] everyone for this year and um for the rest like upcoming years.
[12:09] Yes, we are still offering the bigger size of investment like uh we offer it to Mazda and Aquapower and Envision and there was last we also have signed a mo with UPC here they were they are planning to build like a 2.4 four terowatt.
[12:09] Yes, we are still offering the bigger size of investment like uh we offer it to Mazda and Aquapower and Envision and there was.
[12:12] still offering the bigger size of investment like uh we offer it to Mazda and Aquapower and Envision and there was.
[12:15] investment like uh we offer it to Mazda and Aquapower and Envision and there was last we also have signed a mo with UPC here they were they are planning to build like a 2.4 four terowatt.
[12:18] and Aquapower and Envision and there was last we also have signed a mo with UPC here they were they are planning to build like a 2.4 four terowatt.
[12:22] last we also have signed a mo with UPC here they were they are planning to build like a 2.4 four terowatt.
[12:25] here they were they are planning to build like a 2.4 four terowatt.
[12:28] build like a 2.4 four terowatt a gigawatt the the the.
[12:32] a gigawatt the the the solar plus the wind farm together with.
[12:35] solar plus the wind farm together with the battery storage you know so that is.
[12:38] the battery storage you know so that is going on and they got the land and they.
[12:41] going on and they got the land and they made all the feasibility studies and.
[12:43] made all the feasibility studies and they are ready to invest you know so.
[12:47] they are ready to invest you know so this is now going on so um what kind of.
[12:51] this is now going on so um what kind of the the bigger size of project what we.
[12:54] the the bigger size of project what we are looking for is green hydrogen.
[12:56] are looking for is green hydrogen project plus the data centers.
[13:01] project plus the data centers. So in US for example everyone is more.
[13:04] So in US for example everyone is more focused on fun the data centers while.
[13:06] focused on fun the data centers while Mongolia does a really really good.
[13:09] Mongolia does a really really good advantage you know because price here is.
[13:12] advantage you know because price here is like 16 to 17 cents per kilowatt while.
[13:16] like 16 to 17 cents per kilowatt while we are offering the data center equity.
[13:19] we are offering the data center equity investors like less than 6 cents.
[13:22] investors like less than 6 cents and Mongolia is freezing cold you know.
[13:25] and Mongolia is freezing cold you know even today we are having a snow in.
[13:27] even today we are having a snow in Mongolia you.
[13:30] Mongolia you And uh uh we do have like 8 months of freezing cold after 12 months.
[13:36] So that actually decrease the cooling down price of data centers.
[13:42] At the same time we are the most peaceful country and country of democracy as you know it's we are in between Russia and China and everything is ruled by law and also yes we call the China and the Russia they are our bodyguards you know because there is no war no way and and also we don't have a tsunami because we are landlock country and also we don't have a vitor location of the earth could.
[14:14] So this is really uh the best destination for data centers cheaper energy reliable and we do have both the the renewable resource and also we have resource underground the fossil fuel like uh the coal thermal coal and at the
[14:35] like uh the coal thermal coal and at the same time also we do have a deposit of
[14:37] same time also we do have a deposit of uranium that we have signed with the
[14:39] uranium that we have signed with the French company Orana on the utilization
[14:41] French company Orana on the utilization of the uranium agreement you
[14:43] of the uranium agreement you So that's why uh there are a lot of
[14:46] So that's why uh there are a lot of potentials that we are offering and the
[14:50] potentials that we are offering and the government of Mongolia is very much
[14:51] government of Mongolia is very much committed. If you remember last year I
[14:53] committed. If you remember last year I was here the commitment has been made
[14:57] was here the commitment has been made still going on. That's why uh the
[14:59] still going on. That's why uh the substantial changes happening especially
[15:01] substantial changes happening especially in the energy sector. We have increased
[15:04] in the energy sector. We have increased the tariff and this year we are going to
[15:08] the tariff and this year we are going to increase the tariff as well. And even
[15:10] increase the tariff as well. And even though this is a politically uh
[15:12] though this is a politically uh sensitive but still we are very much
[15:14] sensitive but still we are very much committed you know and that is really
[15:16] committed you know and that is really going on. So yes Mongolia has been seen
[15:19] going on. So yes Mongolia has been seen as the country of the minings but we
[15:22] as the country of the minings but we believe now the Mongolia will be the
[15:25] believe now the Mongolia will be the country of the energy you know. So this
[15:27] country of the energy you know. So this is a a lot of opportunities there and we
[15:29] is a a lot of opportunities there and we are quite open for any kind of business
[15:31] are quite open for any kind of business in Mongolia. Thank you.
[15:33] in Mongolia. Thank you. >> Thank you.
[15:35] Thank you.
[15:37] You mentioned um your neighbors Russia.
[15:39] You mentioned um your neighbors Russia and China a little bit and I was wondering how how do you position yourselves and I guess this is a question for both of you.
[15:44] How would you position Mongolia um you know on a global scale selling resources or selling energy to uh other nations um as an alternative to those countries?
[16:02] Well um well in terms of the energy the Russia in Mongolia are competitors you know we compete in the market like China or like Korea or Japan you know and we actually sell co and coal to China while Russia has and we do sell copper iron ore and zinc etc you So we share the market.
[16:33] Market. So the one big market four of us but the
[16:36] So the one big market four of us but the advantage of Mongolia is like we are very close to Chinese market you know.
[16:40] Very close to Chinese market you know that's a good thing it's only 100 200 kilometers away from the border of the China.
[16:45] All our mining deposits are there and also the source of the the solar and the wind you know is very much located in the nearby the border that actually gives some advantage at the same time.
[17:01] Also if you look at the supplies side of the equipments of solar and wind battery storage you know basically uh it is in China.
[17:12] China.
[17:16] So you know that uh for example is doing good job and they got a lot of investment in the energy sector and price of energy is very low.
[17:24] It's like less than 3 cents per kowat but those investors are already active in Mongolia and they made this study and they said okay the price in Mongolia could be even less it could be around.
[17:37] could be even less it could be around two cents you know the cost.
[17:39] Why? two cents you know the cost.
[17:41] Why? because we are just next to this supply side and all in terms of logistics and transportation you know Mongolia would be very feasible much cheaper
[17:46] and we are closer to this market you know and also as I mentioned that in Korea in Japan they do have a big demand of the clean energy
[18:02] if you look at the numbers like uh the price of energy in China is like 6 to 7 cents
[18:09] This is pretty much a subsidized price.
[18:12] While in Korea it's like 18 cents per kowatt.
[18:15] In Japan it's 26 cents while Mongolia could offer less than like 3 cents or 4 cents you know.
[18:24] So we used to have uh the corridor is called like uh Asian super grid.
[18:28] The initiative has been done by the soft bank in Japan and supported by the government of Japan you know.
[18:34] So that the initiative has been
[18:39] know.
[18:40] So that the initiative has been happened like 10 years ago and they happened like 10 years ago and they decided to invest in Mongolia because
[18:42] decided to invest in Mongolia because they needed the reliable source of the
[18:46] they needed the reliable source of the energy because by that time this
[18:48] energy because by that time this Fukushima nuclear power the plant has
[18:51] Fukushima nuclear power the plant has been uh has been fall down because of
[18:55] been uh has been fall down because of the earthquake and tsunami and they've
[18:57] the earthquake and tsunami and they've been looking for very reliable and the
[19:00] been looking for very reliable and the cheaper source and then it was in
[19:02] cheaper source and then it was in Mongolia you know so that kind of uh
[19:06] Mongolia you know so that kind of uh this corridor initiative is still
[19:09] this corridor initiative is still possible and I had a meeting with the
[19:11] possible and I had a meeting with the Japanese authorities and previous
[19:13] Japanese authorities and previous government and they are very much
[19:16] government and they are very much welcoming this idea at the same time
[19:19] welcoming this idea at the same time also we are talking with the Korean
[19:21] also we are talking with the Korean authorities as well.
[19:24] So because of the technology is uh changing a lot AI is creating a lot of demand of this clean
[19:29] technology is uh changing a lot AI is creating a lot of demand of this clean energy you know.
[19:32] energy you know.
[19:35] So those Asia and East Asia is they do have a really good
[19:38] Asia is they do have a really good demand of and while they need the clean
[19:42] demand of and while they need the clean and cheaper and reliable energy source.
[19:44] and cheaper and reliable energy source you know while we have this so this is.
[19:48] you know while we have this so this is at the the current position of Mongolia.
[19:50] at the the current position of Mongolia in energy sector. Thank you.
[19:55] What I would add is just to echo what.
[19:58] What I would add is just to echo what the deputy prime minister mentioned uh.
[20:00] the deputy prime minister mentioned uh you know Mongolia may be uh landlocked.
[20:04] you know Mongolia may be uh landlocked but it is a sea of democracy.
[20:07] but it is a sea of democracy uh uh in uh uh uh in the context that.
[20:11] uh uh in uh uh uh in the context that was mentioned between uh Russia and.
[20:14] was mentioned between uh Russia and China and could become uh a catalyst for.
[20:18] China and could become uh a catalyst for energy exports um because even though.
[20:21] energy exports um because even though it's a traditional fossil fuel producer.
[20:25] it's a traditional fossil fuel producer. uh it does have on the one hand uh uh.
[20:28] uh it does have on the one hand uh uh the materials the rare earth uh uh.
[20:31] the materials the rare earth uh uh minerals which are absolutely critical.
[20:33] minerals which are absolutely critical for electrification for the continued.
[20:36] for electrification for the continued energy transition on the one hand and.
[20:38] energy transition on the one hand and then given its vast lands uh it's a.
[20:41] then given its vast lands uh it's a prime contender to attract renewable uh.
[20:44] prime contender to attract renewable uh investments whether it's solar whether
[20:46] investments whether it's solar whether it's uh wind that is going to um help uh
[20:52] it's uh wind that is going to um help uh uh change the way that uh the energy
[20:55] uh change the way that uh the energy markets uh in in that region uh uh work
[20:58] markets uh in in that region uh uh work because yes it is uh a little bit more
[21:00] because yes it is uh a little bit more expensive than uh uh Usbekistan as uh as
[21:04] expensive than uh uh Usbekistan as uh as was mentioned but Usbekistan is
[21:07] was mentioned but Usbekistan is unusually cheap and uh through the um
[21:11] unusually cheap and uh through the um energy liberalization uh prices will
[21:14] energy liberalization uh prices will increase uh uh in the region. So theuh
[21:17] increase uh uh in the region. So theuh competition will um uh increase quite uh
[21:21] competition will um uh increase quite uh quite a bit but Mongolia can become an
[21:23] quite a bit but Mongolia can become an exporter once it reaches the level of uh
[21:26] exporter once it reaches the level of uh uh independence as well because demand
[21:30] uh independence as well because demand historically will uh will go up uh very
[21:33] historically will uh will go up uh very very quickly. And uh I think what the
[21:36] very quickly. And uh I think what the last few years and especially the last
[21:38] last few years and especially the last couple of months have uh taught us is
[21:41] couple of months have uh taught us is the need to uh depend on uh internal
[21:44] the need to uh depend on uh internal resources rather than external and
[21:46] resources rather than external and that's across the a wide variety of
[21:49] that's across the a wide variety of fields.
[21:50] fields. >> Sure.
[21:51] >> Sure. >> Thank you. Um you mentioned Mongolia
[21:53] >> Thank you. Um you mentioned Mongolia status as a landlock country.
[21:56] status as a landlock country. to what extent does that um I guess
[21:58] to what extent does that um I guess impact your ability to trade or export
[22:01] impact your ability to trade or export different goods and I guess what's being
[22:04] different goods and I guess what's being done to kind of you know uh expand your
[22:07] done to kind of you know uh expand your ability to trade in spite of being a
[22:09] ability to trade in spite of being a landlocked country
[22:12] for either one of you I guess yeah
[22:15] for either one of you I guess yeah um I I I cannot comment too much I mean
[22:19] um I I I cannot comment too much I mean I I don't think that uh being landlocked
[22:22] I I don't think that uh being landlocked or like in the case of Usbakistan being
[22:25] or like in the case of Usbakistan being double landlocked it doesn't really uh
[22:28] double landlocked it doesn't really uh change the ability to trade you just
[22:31] change the ability to trade you just have to find the uh proper uh commercial
[22:34] have to find the uh proper uh commercial routes and to integrate uh uh yourselves
[22:37] routes and to integrate uh uh yourselves in that uh roots but I think Mongolia is
[22:40] in that uh roots but I think Mongolia is already uh there
[22:45] well uh the Mongolia is landlocked but
[22:48] well uh the Mongolia is landlocked but the good thing is we do have a very good
[22:51] the good thing is we do have a very good market just next to us it's the second
[22:54] market just next to us it's the second biggest market China And then uh number
[22:56] biggest market China And then uh number 11th the market on north it's Russia
[23:00] 11th the market on north it's Russia right.
[23:02] right. So uh what we have done so far is like
[23:04] So uh what we have done so far is like we have agreed with the Chinese
[23:06] we have agreed with the Chinese authority to have more the connectivity
[23:10] authority to have more the connectivity projects and corridors. So far we have
[23:14] projects and corridors. So far we have one railway the corridor from Russia to
[23:17] one railway the corridor from Russia to China. It's been like for 80 years
[23:20] China. It's been like for 80 years and what we have agreed is to make it at
[23:23] and what we have agreed is to make it at least a five and agreement has been done
[23:25] least a five and agreement has been done between two authorities like the
[23:27] between two authorities like the government of Mongolia and government of
[23:29] government of Mongolia and government of China. So this connectivity project is
[23:32] China. So this connectivity project is going on and more the port will will be
[23:37] going on and more the port will will be opened and as a result I think the
[23:40] opened and as a result I think the export of minings and minerals will be
[23:43] export of minings and minerals will be much easier and cheaper to be exported
[23:47] much easier and cheaper to be exported to China you know. So this is going on
[23:51] to China you know. So this is going on as for the energy project. Yes, there
[23:53] as for the energy project. Yes, there are three types of
[23:55] are three types of the export that we are talking in.
[23:57] the export that we are talking in. Number one is yes, we can uh build a
[24:00] Number one is yes, we can uh build a high voltage of transmitted line from
[24:03] high voltage of transmitted line from Mongolia to China.
[24:06] Mongolia to China. And the number two is a green hydrogen
[24:09] And the number two is a green hydrogen project is very feasible
[24:12] project is very feasible and uh the Japanese and Koreans and
[24:16] and uh the Japanese and Koreans and Chinese uh are very much interesting to
[24:20] Chinese uh are very much interesting to produce a the green hydrogen Mongolia
[24:23] produce a the green hydrogen Mongolia and it could be turned into
[24:26] and it could be turned into uh the ammonia
[24:29] uh the ammonia and as you see in Africa and Kenya and
[24:32] and as you see in Africa and Kenya and some countries ammonia is make
[24:34] some countries ammonia is make revolution in agric ulture sector right
[24:38] revolution in agric ulture sector right so we can produce the ammonia in a very
[24:41] so we can produce the ammonia in a very cheap price and it could be used for the
[24:44] cheap price and it could be used for the energy source and as well as in the
[24:48] energy source and as well as in the agriculture sector you know so those
[24:50] agriculture sector you know so those kind of projects now very feasible we
[24:53] kind of projects now very feasible we see it it is very good for export it
[24:55] see it it is very good for export it could be off-grid and lot of demand is
[24:58] could be off-grid and lot of demand is there so number three is we see the data
[25:02] there so number three is we see the data centers and data centers there is no
[25:05] centers and data centers there is no boundary ries and there is no uh the
[25:09] boundary ries and there is no uh the challenge of the landlockedness.
[25:11] challenge of the landlockedness. So what we see is that today for example
[25:14] So what we see is that today for example in US a lot of crypto
[25:18] in US a lot of crypto data centers are turning into AI data
[25:21] data centers are turning into AI data centers right so a lot of the US
[25:24] centers right so a lot of the US companies have a strong interest in west
[25:27] companies have a strong interest in west Mongolia using this Mongolian cheaper
[25:30] Mongolia using this Mongolian cheaper and reliable energy both the renewables
[25:33] and reliable energy both the renewables as well as the the thermal coal you know
[25:38] as well as the the thermal coal you know so this is going on And
[25:42] so this is going on And also there are more chance to park this
[25:45] also there are more chance to park this AI data centers in the future as long as
[25:48] AI data centers in the future as long as it's transmitting this data through
[25:51] it's transmitting this data through cable or through the air you know. So we
[25:56] cable or through the air you know. So we are also working very closely with the
[25:58] are also working very closely with the Starlink even though the cost is little
[26:00] Starlink even though the cost is little higher today but on the way it will be
[26:02] higher today but on the way it will be more feasible and so in this regard yes
[26:05] more feasible and so in this regard yes the exporting energy would be much
[26:08] the exporting energy would be much feasible and also there would be no
[26:12] feasible and also there would be no difficulties of the landlock
[26:15] difficulties of the landlock thank you makes perfect sense I think I
[26:17] thank you makes perfect sense I think I have one one time for one more question
[26:20] have one one time for one more question um and so I'm just going to ask uh and I
[26:22] um and so I'm just going to ask uh and I guess this is a question for both of you
[26:24] guess this is a question for both of you as well but Um, what do you see as kind
[26:26] as well but Um, what do you see as kind of the single biggest factor that takes
[26:28] of the single biggest factor that takes a project in Mongolia from, you know,
[26:31] a project in Mongolia from, you know, something that's interesting or
[26:33] something that's interesting or something that has a lot of potential to
[26:34] something that has a lot of potential to something that's actually bankable?
[26:38] From my perspective, it is political
[26:41] From my perspective, it is political will and political support, right? You
[26:43] will and political support, right? You you cannot make a transformational or
[26:46] you cannot make a transformational or implement a transformational project.
[26:48] implement a transformational project. And this is not just the case for
[26:50] And this is not just the case for Mongolia, it's case for is the case for
[26:52] Mongolia, it's case for is the case for any country. Anything that's big, that's
[26:54] any country. Anything that's big, that's transformational, that puts the country
[26:56] transformational, that puts the country on the map can only happen with
[26:59] on the map can only happen with political will and political support.
[27:05] Well, I I would like to comment on this.
[27:08] Well, I I would like to comment on this. Uh
[27:10] Uh well, uh when we came here last year,
[27:14] well, uh when we came here last year, yes, I have committed like we have
[27:16] yes, I have committed like we have changed our constitution and we got this
[27:20] changed our constitution and we got this coalition government.
[27:22] coalition government. So our policy will be stable you know
[27:24] So our policy will be stable you know but so far the government has been
[27:26] but so far the government has been changed
[27:29] changed and a lot of people has questioning hey
[27:31] and a lot of people has questioning hey what is this political stability where
[27:33] what is this political stability where is it you know but I say yes we are here
[27:36] is it you know but I say yes we are here we are the country of democracy very
[27:39] we are the country of democracy very strong the democracy but the good thing
[27:41] strong the democracy but the good thing is that always there are like three
[27:44] is that always there are like three political parties
[27:46] political parties are uh established the coalition
[27:49] are uh established the coalition government you know and I was here last
[27:52] government you know and I was here last year I was talking about this energy I
[27:56] year I was talking about this energy I made the commitment in front of all the
[27:58] made the commitment in front of all the partners still I am here because I'm
[28:01] partners still I am here because I'm actually leader of the one of the party
[28:03] actually leader of the one of the party political party you know and still I am
[28:06] political party you know and still I am in charge of this energy reform and also
[28:09] in charge of this energy reform and also my political uh the minister of energy
[28:12] my political uh the minister of energy has been appointed from my the block
[28:16] has been appointed from my the block which means it is much easier and uh to
[28:19] which means it is much easier and uh to implement the sizable projects in energy
[28:21] implement the sizable projects in energy the sector and so this is going on. So
[28:24] the sector and so this is going on. So we do have very strong commitment and
[28:26] we do have very strong commitment and will be and we believe that the next 10
[28:30] will be and we believe that the next 10 20 years we'll be
[28:33] 20 years we'll be very much committed to implement the
[28:35] very much committed to implement the bigger size of project and both the uh
[28:40] bigger size of project and both the uh the ruling party and today we have this
[28:42] the ruling party and today we have this green party and democrats you know
[28:44] green party and democrats you know everyone is very much committed to
[28:47] everyone is very much committed to implement bigger size of project and to
[28:50] implement bigger size of project and to offer very uh solid and good the
[28:54] offer very uh solid and good the investment environment especially in
[28:57] investment environment especially in energy sector you know so this is I
[29:00] energy sector you know so this is I think I can guarantee again and next
[29:03] think I can guarantee again and next year I think I'll be here again to talk
[29:06] year I think I'll be here again to talk about how much fund we have raised and
[29:08] about how much fund we have raised and uh what you need to what you need to do
[29:12] uh what you need to what you need to do and what we can offer so today for
[29:14] and what we can offer so today for example tomorrow we are going to join
[29:16] example tomorrow we are going to join this Bloomberg new energy financial
[29:19] this Bloomberg new energy financial forum and gonna meet with um the funds
[29:23] forum and gonna meet with um the funds and banks like JP Morgan, Goldman Sachs
[29:26] and banks like JP Morgan, Goldman Sachs and we had also a very good meeting here
[29:29] and we had also a very good meeting here last Friday with the car you know so we
[29:32] last Friday with the car you know so we are talking about to establish
[29:34] are talking about to establish kind of equity fund in Mongolia
[29:38] kind of equity fund in Mongolia so this talk is getting very serious so
[29:41] so this talk is getting very serious so lot of the IFI fund is on the table but
[29:44] lot of the IFI fund is on the table but what we need is now the equity
[29:46] what we need is now the equity investment
[29:48] investment for the energy sector at this also
[29:51] for the energy sector at this also mining projects So that is going on.
[29:53] mining projects So that is going on. Thank you.
[29:55] Thank you. >> Thank you. I think um should we wrap up?
[29:57] >> Thank you. I think um should we wrap up? Thank you so much to our panelists.
[29:59] Thank you so much to our panelists. Really appreciate your time in the
[30:00] Really appreciate your time in the comments.