Mongolian Copper Exports Plummet Due to China Border Restrictions

Oyu Tolgoi LLC, the operator of one of Mongolia's largest copper mines, announced that its copper concentrate exports to China have decreased by approximately 70% over the past two weeks. The company attributes this significant decline to restrictions imposed at a Chinese border crossing, raising concerns about potential revenue losses and disruptions within Mongolia's substantial mineral sector.

The restrictions are affecting the Ganqimaodu Border Port in China, which is adjacent to Mongolia’s Gashuunsukhait Border Port. Oyu Tolgoi LLC stated that the daily number of truck convoys transporting copper concentrate across the border has fallen from an average of 12 to 13 to around four.

Local media reports suggest that these export cuts could lead to a decline of approximately $300 million compared to normal operating conditions. If the restrictions persist through the end of the year, the potential losses could reach $1.2 billion, though Oyu Tolgoi LLC did not confirm these figures in a statement to The Associated Press.

Mongolian border officials indicated that the slowdown is related to infrastructure and technology upgrades at the Ganqimaodu Border Port. Chinese authorities in the Inner Mongolia region have not immediately responded to inquiries regarding the situation. According to Mongolian border authorities, Chinese officials introduced an in-vehicle facial recognition system for truck drivers at the border in August, and ongoing installation and maintenance work have impacted the port's processing capacity.

Mongolia's government has been informed by the Chinese embassy in Ulaanbaatar that these upgrades, initially expected to conclude by late September, may continue until the end of December. Mongolian Finance Minister Mendsaikhan Zagdjav has reportedly instructed ministers to visit the border crossing and engage with Chinese authorities. The minister of Road and Transport, Delgersaikhan Borkhuu, stated that all transport routes on the Mongolian side remain open and that the government is not aware of any political reasons behind the restrictions.

Mongolia is a significant supplier of copper and coal to China, the world's largest consumer of these commodities. The copper sector is an increasingly vital contributor to Mongolia's national export revenues, with copper concentrate exports reportedly reaching 2 million tons in the first nine months of 2026.

The border crossing restrictions have also impacted Mongolia's coal exports through Gashuunsukhait, reducing the daily number of crossing vehicles from 1,300 to just over 1,000.

Mongolia's economy is heavily reliant on its abundant mineral resources, including coal, copper, gold, uranium, and fluorspar. Mining accounts for approximately a quarter of the country's GDP, making it particularly sensitive to cross-border trade disruptions and fluctuations in commodity prices. In the previous year, coal and copper concentrates together constituted 82.3% of Mongolia's merchandise exports, with 89.4% of total exports destined for China. Mongolia also served as China's primary supplier of imported coking coal, accounting for roughly 51% of China's coking coal imports in 2025.