Mongolian Copper Exports Fall 70% Amid China Border Upgrades

Oyu Tolgoi LLC, the operator of one of the world's largest copper mines, reported that its copper concentrate exports to China have fallen by roughly 70 percent over the last two weeks. The drop stems from processing limits at the Ganqimaodu Border Port in China, which sits next to Mongolia's Gashuunsukhait Border Port. The company announced the change on Thursday.

Truck convoys crossing the border have slowed to three or four per day. That is a sharp reduction from the usual 13 to 15 daily trips. Oyu Tolgoi calculated the immediate financial impact at approximately $300 million compared to normal operations. If the restrictions persist through the end of the year, the company estimates total lost export revenue could hit $1.2 billion.

Mongolian border officials attributed the slowdown to infrastructure and technology upgrades at the Chinese port. They noted that Chinese authorities installed an in-vehicle facial recognition system for truck drivers in August. Installation and maintenance work for that system have reduced the port's processing capacity, the officials said.

The Chinese embassy in Ulaanbaatar told the Mongolian government that the work may continue until the end of December. Mongolian news reports indicated the project was originally scheduled to finish by late September. Authorities in China's Inner Mongolia region did not immediately answer faxed questions regarding the timeline.

Finance Minister Mendsaikhan Zagdjav said the Cabinet instructed several ministers to visit the border crossing to meet with Chinese counterparts. Road and Transport Minister Delgersaikhan Borkhuu stated that all transport routes on the Mongolian side remain open. He added that the government was not aware of any political reasons behind the restrictions.

The slowdown also affects coal shipments. Border authorities said vehicle crossings for coal fell to just over 1,000 per day from 1,300 per day. Coal and copper concentrates together made up 82.3 percent of Mongolia's merchandise exports last year. China received 89.4 percent of all Mongolian exports in that period. Mining accounts for roughly a quarter of Mongolia's GDP.

Copper concentrate exports reached 2 million tons during the first nine months of 2026. In 2025, Mongolia supplied approximately 51 percent of China's imported coking coal. The country's economy relies heavily on these cross-border trade flows.