Prime Minister Zandanshatar Gombojav has firmly instructed state-owned enterprises (SOEs) that SOEs must lead the country’s austerity efforts. During a recent meeting with officials from the “Erdenes Mongol” Group, he stressed the urgent need to eliminate wasteful spending and streamline the structure of SOEs and factories.
To begin with, Narantsogt Sanjaa, CEO of the “Erdenes Mongol” Group, presented a detailed reform plan. He outlined a three-phase strategy aimed at increasing revenue while reducing costs. For instance, “Erdenet Mining Corporation” plans to boost its revenue by MNT 208 billion. Meanwhile, other subsidiaries aim to exceed their targets by MNT 95 billion combined.
Despite some setbacks, such as a MNT 32 billion drop in sales for “Shivee Ovoo” and “Baganuur,” the group responded proactively. In addition, investments have been postponed strategically: “Erdenes Tavantolgoi” delayed projects worth MNT 199 billion, and “Erdenet Mining Corporation” held back MNT 320 billion in spending. Moreover, other subsidiaries postponed MNT 36 billion in investments.
Cost-cutting measures followed suit. For example, “Erdenes Tavantolgoi” expects to reduce operational expenses by MNT 1.3 billion. Other companies managed to cut costs by MNT 45 billion altogether. These changes reflect the government’s clear message that SOEs must lead by example in implementing austerity.
Furthermore, Prime Minister Zandanshatar highlighted the government’s priority to improve public service quality, accessibility, and productivity. He acknowledged that many citizens criticize the excessive structures and poor output of state enterprises. In fact, roughly 38,000 people—out of 188,000 respondents to the 2026 State Budget Draft poll—recommended dismantling inefficient SOEs and reducing unnecessary costs.
The Prime Minister also reminded the group of its constitutional duty to share natural resource benefits fairly with the public. He noted that the “Erdenes Mongol” Group has the potential to generate up to MNT 4 trillion in benefits. Therefore, their revenue growth plan for 2025 must not fall below this amount.
In addition, the Premier stressed the importance of increasing exports and tax contributions to the State Budget in 2026. Doing so will help enrich the National Sovereign Wealth Fund. He also urged the group to carefully plan and manage processing factories and procurement activities.
Ultimately, Prime Minister Zandanshatar made one point clear: to succeed, SOEs must lead through concrete actions rather than words. Without decisive reforms, the government’s austerity goals will remain out of reach.
