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Mongolia and Gulf States Forge Ties Over Critical Minerals and Energy Transition, How Serious are the Parties?

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Highlights

  • Mongolia seeks to reduce economic dependency on China and Russia.
  • Courtship of Gulf state partnerships in critical minerals exploration.
  • Prime Minister Oyun-Erdene discusses collaboration with UAE, Saudi Arabia, and Bahrain.
  • Focus on geological surveys, mineral resources, and renewable energy.
  • Targeting global energy transition by leveraging Mongolia’s mineral wealth.
  • Focus on resources like lithium, nickel, and rare earth elements.

Mongolia’s Prime Minister Luvsannamsrai Oyun-Erdene (opens in a new tab) is actively courting partnerships with Gulf states to leverage Mongolia’s critical mineral wealth in the global energy transition. During visits to the UAE, Saudi Arabia, and Bahrain, Oyun-Erdene discussed collaboration on geological surveys, mineral exploration, and renewable energy. The Gulf states, with their technological expertise and focus on building resilient supply chains for critical minerals, have expressed interest in co-developing projects for resources like lithium, nickel, and rare earth elements—essential for clean energy technologies and electric vehicles.

The recent unfolding situation was reported in The National News (opens in a new tab), a UAE state-owned English-language daily newspaper published in Abu Dhabi, United Arab Emirates.

Mongolia, a major exporter of coal and copper to China, is diversifying its partnerships to reduce dependency on its two dominant trade partners, China and Russia. With initiatives like the Oyu Tolgoi project (opens in a new tab)—slated to be one of the world’s largest copper mines by 2030—and planned “satellite cities” like Khushigt Valley, Mongolia aims to align its economic growth with global shifts toward sustainability. The UAE’s Masdar and other Gulf entities have expressed interest in energy transition and urban infrastructure collaboration, bolstering Mongolia’s efforts to modernize its economy.

Underlying Messages and Missing Details

The article emphasizes Mongolia’s ambition to position itself as a key player in the global critical minerals supply chain but downplays potential challenges. For example, the reliance on China for coal exports remains a significant vulnerability despite diversification efforts. Additionally, the details of proposed agreements with the Gulf and the specific financial or technological contributions expected from these partnerships remain unclear.  Without serious investment and long-term commitment, much of this is talk.

Bias and Assumptions

The narrative portrays Mongolia’s pivot to Gulf partnerships as entirely strategic and beneficial, glossing over potential geopolitical risks, such as tensions with China or Russia over expanded Western-aligned collaborations. It also assumes that Gulf states’ expertise and investments will seamlessly translate into mutual benefits without addressing how Mongolia plans to navigate the environmental and social costs of accelerated resource extraction.

Conclusion

Mongolia’s outreach to Gulf states reflects a bold strategy to leverage its mineral resources for economic growth and align with global clean energy goals. However, the lack of specifics on partnership frameworks and the geopolitical risks associated with balancing ties with both traditional and new partners raise critical questions about the long-term sustainability of this approach.

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