Overview

Resource-rich, democratic and outward-looking, Mongolia is the world's most sparsely populated country, with 3.4 million people spread over an area almost as big as Queensland. Strategically located between Russia to the north and China to the south, landlocked Mongolia is home to rolling grasslands, freshwater lakes, alpine forests, mountain glaciers and vast sand dunes.

Mongolia is a rapidly urbanising country, with 69 per cent of its citizens now living in cities. It is also a relatively young country, with a median age of only 27 years. The majority of Mongolia's population is ethnically Khalkh Mongol, but there are around 20 ethnic groups with substantial numbers of Kazakh and Oirat peoples residing in the west of the country. There is also a small indigenous minority, Tsaatan (also known as the reindeer people) living in the Sayan Mountains around Lake Khövsgöl in northern Mongolia. Mongolia is administratively divided into 21 'aimag' (states or provinces) and the capital city of Ulaanbaatar.

Mongolia formally declared its independence in 1911, and then again in 1921 following the Mongolian People's Revolution. As a socialist state for most of the 20th century, its agrarian-based economy was centrally-planned. Following structural reforms and privatisation in the 1990s, Mongolia emerged as a developing democracy with one of the world's fastest-growing economies.

From the mid-1990s, Mongolia has pursued a 'third neighbour' policy which seeks to engage countries with similar views on human rights, democracy and free markets. Engagement with countries, such as Australia, has helped Mongolia to expand its trade, investment, development cooperation and foreign policy contacts beyond its immediate neighbours.

Political Overview

Mongolia held its first democratic elections in 1990, after 70 years of single-party rule. There are two major political parties in the country: the Mongolian People's Party (MPP), which evolved from the communist single-party government, and the Democratic Party (DP) that grew out of Mongolia's 1990 democracy movement.

Executive power in Mongolia is shared between the Prime Minister and the President. Legislative power rests with the State Great Khural (Parliament) of Mongolia. Members of the State Great Khural  are elected for a fixed four-year term, while the President serves a single six-year term (on different electoral cycles). The Cabinet is appointed by the Prime Minister. The President is the Commander-in-Chief and holds the power to veto legislation, although this can be overridden by a two-thirds majority in Parliament.

In the ninth Parliamentary Elections held since the 1992 Constitution came into effect, power has alternated between the two major parties. The DP formed grand coalition governments in 1996, 2004 and 2012, while the MPP achieved decisive victories in elections held in 1992, 2000, 2008, 2016 and 2020. Following a constitutional amendment in 2023, the number of parliamentarians increased from 76 to 126. In June 2024  Parliamentary Elections, the MPP secured a slim majority (68 of 126 seats) and signed a memorandum of understanding with the Democratic Party (42 seats) and HUN Party (8 seats) to form a Coalition Government.  

Since the 1992 Constitution came into effect, eight Presidential Elections have been held in Mongolia. On 9 June 2021, Ukhnaagiin Khurelsukh (MPP) was elected President with a large majority in the first round of voting. Former President Khaltmaagiin Battulga (DP) had been ruled ineligible to run for a second term following a constitutional ruling. The next Presidential Elections will be held in 2027.

Economic overview

Heavy reliance on the mining sector has linked Mongolia's economic fortunes to global mineral commodity prices. Between 2011 and 2013, Mongolia's GDP grew in double digits before it slowed to 1.2 per cent in 2016 amid a weakening commodity market. The economy picked back up again in 2017, primarily on the back of positive developments in the minerals sector. Growth continued unabated until 2020, when Mongolia's economy contracted by 5.3 per cent due to the impacts of COVID-19. According to Asian Development Bank, Mongolia's GDP is expected to grow by 4.1 per cent in 2024 and 6 per cent in 2025.

Agriculture (primarily nomadic pastoralism), once the mainstay of the Mongolian economy, continues to decline due to its vulnerability to climate change as a share of national employment and contribution to GDP.

Mongolia's mining sector continues to grow strongly, and around 90 per cent of Mongolian exports are related to the mining industry, notably copper, gold and coal. Australian companies are well-placed to assist in developing Mongolia's resources, and there is strong commercial interest and investment potential in Mongolia's minerals and energy sector. The Oyu Tolgoi copper and gold mine alone is expected to account for as much as 33 per cent of Mongolia's GDP once full commercial ore production starts.

Bilateral trade between Australia and Mongolia is growing. In 2023, two-way trade totalled $388 million.  Australian exports accounted for the majority of trade ($373 million). Australia's major exports to Mongolia included education-related travel  ($286 million), recreation travel  ($28 million), Other ores and concentrates  ($15 million),  and pumps for liquid and parts ($5 million ) . Australia's principal imports from Mongolia in  2023 included recreation travel ($8 million), and Business related travel ($45million).

Mongolia possesses numerous assets, including raw materials, sizable livestock and many other sectors with high potential for development (mining, food processing, telecommunications and tourism), but its economy is heavily reliant on foreign capital inflows. In 2024, the annual inflation rate in Mongolia is forecasted at 7 per cent and 6.8 per cent in 2025.

China is Mongolia's largest goods trading partner, accounting for around  91 per cent of Mongolia's goods exports (predominantly copper and coal) and approximately 41 per cent of goods imports in 2023. Increasing numbers of Chinese workers are providing labour in Mongolia.

The Mongolian Government confronts major challenges in managing a growing economy, large-scale foreign investment and the rising expectations of its citizens. While strong economic growth in previous years has helped the country reach upper-middle income status, Mongolia's poverty rate remains relatively high with the Asian Development Bank reporting that about 27.1  per cent of the population still live in poverty in 2022.

Bilateral Relations

Australia established diplomatic relations with Mongolia on 15 September 1972. Bilateral engagement accelerated markedly following democratic and free-market reforms in Mongolia during the early 1990s. The focus of the bilateral relationship has primarily been on education, development assistance and commercial activities in Mongolia's resources sector. There are also growing people-to-people links and deepening political engagement between Australia and Mongolia.

Mongolia opened an embassy in Canberra in 2008. The Australian Trade and Investment Commission (Austrade) opened a trade office in Ulaanbaatar to serve the needs of Australian business in 2011. The Australian Embassy in Ulaanbaatar was opened in December 2015. 2022 marked the 50th anniversary of diplomatic relations between Australia and Mongolia.

Australia and Mongolia are in the process of elevating the bilateral relationship to a Comprehensive Partnership. Senior Officials Talks are held every couple of years.

People-to-People links

People-to-people links between Australia and Mongolia continue to grow strongly. Since 1993, the Australian Government has supported over 760 Australia Awards Scholarships to Mongolia citizens including over 500 female awardees. This has created a vibrant alumni network, affectionately known as 'Mozzies', many of whom have become influential Mongolian parliamentarians, officials and business people.

Australia has long had a volunteer presence in Mongolia. Since 2011, 230 Australian volunteers have contributed to Mongolia's development, with 45 in-country volunteers over the last five years. Business is further deepening links between Australia and Mongolia. Around 500 Australians live in Mongolia, with a further 4000 Australians visiting in 2023-2024. Over 60 Australian businesses are engaged in Mongolia, including several large companies operating in the mining sector.

Australia and Mongolia cooperate on many global and regional issues, including in defence and security. Contributing to international peacekeeping and security has been a particular focus of our cooperation. Australians and Mongolians have served together in UN peacekeeping operations including in South Sudan. We have also both deployed on coalition operations in Iraq and Afghanistan, as well as peacekeeping operations in Kosovo and Sierra Leone. Australia and Mongolia hold regular bilateral defence policy talks, and Australia participates in the annual Khaan Quest peacekeeping exercises hosted by Mongolia.

High-level visits

High-level visits between Mongolia and Australia have reinforced ongoing cooperation between the countries. At head-of-state level, then Governor-General Bill Hayden visited Mongolia in 1994 and Mongolia's first democratically elected President, Punsalmaagiin Ochirbat, visited Australia in 1997.

In February 2011, then Prime Minister Gillard welcomed His Excellency Sukhbaatar Batbold, as the first Mongolian Head of Government to visit Australia (Joint Statement by Prime Ministers Gillard and Batbold). His delegation included several Mongolian ministers, parliamentarians and businesspeople. In March 2014, Mongolian Foreign Minister, Luvsanvandan Bold visited Australia, the first Mongolia Foreign Minister to visit Australia since 1993.

Other senior Mongolian visits to Australia include

• May 2024, Climate Envoy and Advisor for their Minister of Environment, Mr Odbayar Odonchimed, met with Ms Kristin Tilley, Ambassador for Climate Change.
• November 2023: Chairman of the Financial Regulatory Commission of Mongolia, Mr Bayarsaikhan Dembereldash, met with officials from the Australian Securities and Investments Commission (ASIC) including ASIC Commissioner Kate O'Rourke
• November 2023: Governor of Khovd Province, Bolormaa Enkhbat, visited Australia under DFAT's Special Visits Program and met with federal and state government, private industry and academia, focusing discussions on renewable energy, agricultural industry and gender equality
• October 2023: Chairman of the Financial Regulatory Commission of Mongolia, Mr Bayarsaikhan Dembereldash, met with the Australian Securities and Investments Commission.
• September 2023: Mongolian Foreign Minister Batmunkh Battestseg visited Australia on a four-day official visit at the invitation of Foreign Minister Penny Wong.
• September 2023: Minister of Construction and Urban Development, HE Mr Davaasuren Tserenpil, visited Australia to on a fact-finding mission to learn more about the Australian construction sector and Australia's expertise in urban planning and renewable energy.
• March 2023: Minister of Education and Science, Mr Enkh-Amgalan Luvsantseren, sought further cooperation in education and TVET and met with the Minister for Skills and Training Brendan O'Connor.
• November 2022: the Minister of Mining and Heavy Industry, HE Mr Ganbaatar Jambal, attended the International Mining and Resources Conference (IMARC) and met with the Minister for Resources Madeleine King to exchange views on expanding cooperation
• September 2022: Deputy Prime Minister HE Mr Amarsaikhan Sainbuyan paid an official visit to Australia coinciding the 50th anniversary of diplomatic relations and met with Minister of Foreign Affairs Penny Wong and Minister of Defence Richard Marles
• January 2020, Chairman of the Great State Khural, Zandanshatar Gombojav, attended the Asia Pacific Parliamentary Forum in Canberra and met with Speaker Tony Smith and Senator Dean Smith.
• March 2019, Deputy Minister for Labour and Social Protection, Sanjaa Mungunchimeg led a delegation to meet with government officials and members of the academic community to learn about Australia's social and human services policies and approaches;
• February 2019, Governor of Nalaikh District, Radnaabazar Choijinsambuu, visited Goulburn to formally establish the Nalaikh-Goulburn sister city relationship, enhancing people-to-people and municipal government links;
• April 2019, Naranbaatar Nanzad, Governor for Umnugobi Province, led a health study tour to Victoria, focused on the delivery of health services in remote areas;
• June 2019, the Director of Mineral Resources for the National Geoscience Database of Mongolia, Namsrai Munkhbileg, and other officials visited as part of ongoing engagement with Australia's geoscience industry and GeoScience Australia;
• August 2019 Batkhuyag Mergee, General Director of Mongolia's Treasury Department, met with Department of Finance and Treasury officials, to understand Australia's approach to government financial management.
• October 2018, the Mongolian Minister for Mining and Heavy Industry, Sumiyabazar Dolgorsuren, led a delegation to the International Mining and Resources Conference (IMARC) in Melbourne, where he met Minister for Resources and Northern Australia, Senator the Hon Matthew Canavan
• October 2017, Dendev Terbishdagva, Chair of the Standing Committee on Economics, and three other MPs met then Foreign Minister Bishop and Ann Sudmalis MP, Chair of the Australia-Mongolia Parliamentary Group, during their visit to Australia for IMARC 2017.
• March 2016, Damba Gankhuyag, State Secretary, Ministry of Foreign Affairs of Mongolia, led a delegation to Australia for High Level Consultations with the Department of Foreign Affairs and Trade.
• May 2013, Mongolian Minister for Mining Davaajav Gankhuyag visited Australia for the Extractive Industries Transparency Initiative Global Conference and the State Secretary of the Ministry of Foreign Affairs, Gombo Tsogtsaikhan, visited Australia to meet with senior Australian Government officials.
• 2011, Mongolian Deputy Prime Minister Miyegombo Enkhbold visited Australia to study our social welfare system.

Australian senior visits to Mongolia

• August 2024, Australia's Ambassador for Gender Equality, Ms Stephanie Copus Campbell, represented Australia at the World Women's Forum in Ulaanbaatar.
• April 2024, Senior Officials from Department of Foreign Affairs and Trade, Department of Defence, Department of Home Affairs and Austrade held a Senior Officials Talks with their Mongolian counterparts in Ulaanbaatar.
• July 2023, The Hon Tania Lawrence MP, Chair of the Parliamentary Friendship Group, participated in the Mongolia Economic Forum.
• July 2023, Nyangumarta Elders from the Pilbara Region visited Mongolia at the invitation of Rio Tinto during NAIDOC week.
• June 2023, Ms Stephanie Copus-Campbell, Ambassador for Gender Equality, represented Foreign Minister Wong at the Female Foreign Minister's Meeting.
• July 2018, then Minister for International Development and the Pacific, Senator the Hon Concetta Fierravanti-Wells, visited Ulaanbaatar to represent Australia at the Asian Ministerial Conference on Disaster Risk Reduction (AMCDRR), hosted by Mongolia.
• May 2017, Australia's Ambassador for Women and Girls, Dr Sharman Stone, visited Mongolia to highlight Australia's work to improve women's equality and economic empowerment in Mongolia.
• April 2016, the Deputy President of the Senate, Senator Gavin Marshall, attended the Asia Europe Parliamentary Meeting in Mongolia.
• October 2012, then Foreign Minister Bob Carr visited Mongolia to open the Australian Consulate-General in Ulaanbaatar and discuss the bilateral relationship and growing commercial and aid ties.

Australia and Mongolia have also had a number of official inter-parliamentary engagement visits. In September 2012, a delegation of the House of Representatives Regional Australia Committee led by Tony Windsor MP visited Mongolia. In January 2011, Harry Jenkins MP, the then Speaker of the House of Representatives, led a delegation to the Asia Pacific Parliamentary Forum hosted by Mongolia. In 2010, a delegation of Australian Members of Parliament led by Annette Hurley MP visited Mongolia and ten Mongolian State Secretaries visited Australia. In 2009, two delegations from Mongolia led by Members of Parliament visited Australia, and a group of four Australian Members of Parliament from the Australia-Mongolia Parliamentary Group visited Mongolia.