Uzbekistan–Mongolia Cooperation: A New Stage in Bilateral Relations

Uzbekistan and Mongolia, despite the absence of a shared border and geographical proximity, continue to demonstrate consistent progress in their political, economic, and investment ties. Since the establishment of diplomatic relations in January 1992, both countries have steadily strengthened bilateral cooperation, advancing toward a qualitatively new level of partnership.

On the State and Prospects of Trade and Economic Cooperation Between Uzbekistan and Mongolia

The Economy of Mongolia

According to the Asian Development Bank, Mongolia maintained economic stability in 2024, with GDP growing by 4.9% and reaching $21.3 billion. The largest share of Mongolia's GDP structure is occupied by services (46.8%), followed by mining and quarrying (25.2%), agriculture (13%), and other sectors (15%).

Mongolia possesses significant mineral resources, with over 8,000 known deposits and approximately 1,200 mines extracting more than 80 types of minerals. The country has vast reserves of coal (33.4 trillion tonnes), iron ore (1.84 trillion tonnes), oil (332 million tonnes), copper (69.9 million tonnes), uranium (192 thousand tonnes), and gold (448.1 tonnes).

New stages of cooperation between Uzbekistan and Mongolia in the field of geological exploration and mining industry

Mongolia: rich in mineral resources and potential for cooperation

Mongolia is located in Northeast Asia with a population of about 3.5 million people and an area of more than 1.56 million square kilometers. This state, despite its relatively small population, has huge natural resources, including large reserves of uranium, gold, copper and other rare earth metals. According to the World Nuclear Association, Mongolia ranks 12th in the world in terms of uranium reserves, its confirmed resources are about 60.5 thousand tons of uranium, and geological studies, in turn, show the potential of up to 1.32 million tons of uranium. Gold and copper also play an important role in the country's economy. Mongolia has one of the leading copper exports in the world, its gold mining industry holds a significant share in exports and as of 2019 accounts for 90 percent of total mineral production.

TMK – a brand bringing Uzbekistan to the global stage in the field of critical minerals

The Technological Metals Company (TMK) emerged as one of the key participants of the 4th Tashkent International Investment Forum, showcasing to the forum’s guests and foreign investors the country’s approach grounded in its critical mineral reserves and industrial potential, reports Dunyo IA correspondent.

Within the framework of the forum, a panel session was held on the topic “Uzbekistan as a strategic center for critical raw materials: investment opportunities along the value chain”, during which advanced technologies and issues related to the diversification of these resources were discussed.

During the forum, several high-ranking guests, including the President of Bulgaria, Rumen Radev, and the Prime Minister of Slovakia, Robert Fico, visited the TMK stand and closely familiarized themselves with the investment projects on critical minerals being implemented by the Uzbekistan Technological Metals Company.

“Central Asia – China”: A Long-Term Model of Regional Cooperation

On June 17, the President of Uzbekistan, Shavkat Mirziyoyev, will participate in the second “Central Asia – China” Summit, which will be held in Astana, the capital of Kazakhstan.

The primary objective of this platform is to enhance efforts to strengthen multifaceted ties between the countries of the region and China, as well as to develop interregional cooperation.

The agenda of the format includes an exchange of views on global and regional issues, and the consolidation of cooperation in areas such as politics, security, trade, economy, investment, transport, regional connectivity, agriculture, energy, green energy, customs, cultural and humanitarian spheres, and the alignment of national development strategies with the “Belt and Road Initiative”.

The “Central Asia – China” dialogue, which is gaining a systemic character, is primarily aimed at achieving mutual economic benefit. Over recent years, China has consistently ranked among the leading trade partners of Central Asian countries. With Chinese capital involvement, dozens of projects are being implemented across all countries in the region, spanning industry, energy, transport, logistics, and trade.

Currently, approximately 6,000 joint ventures have been established between Central Asian and Chinese partners. The region’s total trade turnover with China amounted to 94.8 billion US dollars in 2024, and is expected to reach 100 billion US dollars in 2025.

Uzbekistan’s Energy Transformation: A Phased Transition to Market Mechanisms

Since 2017, Uzbekistan has been implementing wide-ranging reforms in the energy sector aimed at increasing efficiency, modernizing infrastructure, and transitioning to market-based mechanisms. Between 2017 and 2024, key legislative and institutional measures were adopted, including 8 laws and over 90 presidential and cabinet resolutions, laying the regulatory foundation for a deep transformation of the sector.

Electricity production in the country increased by 38%, rising from 59 billion kWh in 2016 to 81.5 billion kWh in 2024. At the same time, per capita generation rose by 18%, reaching 2,200 kWh. Over the past seven years, Uzbekistan commissioned 11,000 MW of new generation capacity – three times the volume added in the preceding 25 years.