Mongolia’s copper exports to China drop 70% amid border restrictions

Mongolia’s copper exports to China have fallen sharply after restrictions at a key border crossing, with the operator of one of the country’s largest copper mines saying shipments have dropped by about 70 percent over the past two weeks. The disruption has raised concerns about potential revenue losses and the wider impact on Mongolia’s mineral sector, which is central to its economy.

Oyu Tolgoi LLC, which runs the Oyu Tolgoi mine, one of the world’s largest copper operations, said Thursday that the number of truck convoys carrying copper concentrate across the Chinese border has fallen from the usual 12 to 13 per day to around four. The restrictions affect vehicles crossing at China’s Ganqimaodu Border Port, which sits next to Mongolia’s Gashuunsukhait Border Port. Local media reported on Wednesday that the export cuts amount to a decline of about $300 million compared with normal operations, and that the figure could reach $1.2 billion if the restrictions continue through the end of the year. Oyu Tolgoi LLC did not confirm those reported losses in a statement to The Associated Press.

Mongolian border officials said the slowdown is linked to infrastructure and technology upgrades at the Ganqimaodu Border Port. In August, Chinese authorities introduced an in-vehicle facial recognition system for truck drivers crossing the border, and the installation and maintenance work has reduced border processing capacity, according to Mongolian authorities. Mongolia’s government said the Chinese embassy in Ulaanbaatar informed it that the work, originally expected to end by late September, may continue until the end of December. Authorities in China’s Inner Mongolia region did not immediately respond to questions from the AP.

The restrictions have also affected coal shipments through Gashuunsukhait. Border authorities said the number of vehicles crossing fell to just over 1,000 a day from 1,300 a day. Mongolian Finance Minister Mendsaikhan Zagdjav said some ministers were instructed during a Cabinet meeting to visit the border crossing and meet Chinese officials, according to local news reports. Minister of Road and Transport Delgersaikhan Borkhuu said all transport routes on the Mongolian side remain open and that the government was not aware of any political reasons behind the restrictions.

The stakes are high because copper has become an increasingly important source of national export revenue. Mongolia reportedly exported 2 million tons of copper concentrate in the first nine months of this year. The country has abundant mineral resources, including coal, copper, gold, uranium and fluorspar, and mining accounts for roughly a quarter of its GDP, which makes its economy especially sensitive to cross-border disruptions and swings in commodity prices.

China is the dominant destination for Mongolian goods. Last year, coal and copper concentrates together accounted for 82.3 percent of Mongolia’s merchandise exports, and 89.4 percent of total exports went to China. Mongolia was also China’s leading supplier of imported coking coal, accounting for about 51 percent of Chinese coking coal imports in 2025. Because China is the world’s largest consumer of both coal and copper, the border slowdown has consequences that extend beyond Mongolia’s own accounts.

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Delaney Sawyer

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Delaney Sawyer covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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