Mongolia's Copper Shipments Plunge as Border Upgrades Slow Truck Traffic

Oyu Tolgoi LLC reported a sharp decline in copper concentrate shipments to China over the past fortnight.

The operator of one of the world's largest copper mines stated that truck convoys crossing the border have dropped from a normal 13 to 15 per day to just three or four. This reduction represents a roughly 70% cut in transport volume. The bottleneck occurs at China's Ganqimaodu Border Port, which sits next to Mongolia's Gashuunsukhait Border Port.

The company calculated the financial impact of the slowdown at approximately $300 million below standard operating levels. If the restrictions persist through the end of the year, total lost export revenue could climb to $1.2 billion. The disruption affects a critical revenue stream for a nation where mining accounts for nearly a quarter of gross domestic product.

Mongolian border officials attributed the delay to infrastructure and technology upgrades at the Chinese port. Authorities in Inner Mongolia did not immediately respond to inquiries. Mongolian officials noted that Chinese authorities installed an in-vehicle facial recognition system for truck drivers in August. Installation and maintenance work for this system have reduced processing capacity. The Chinese embassy in Ulaanbaatar indicated that the work, originally scheduled to finish in late September, may now continue until the end of December.

Mongolia's government is actively engaging with Chinese counterparts to address the issue. Finance Minister Mendsaikhan Zagdjav announced that several ministers were ordered to visit the border crossing during a recent Cabinet meeting. Road and Transport Minister Delgersaikhan Borkhuu confirmed that all transport routes on the Mongolian side remain open. He stated that the government was unaware of any political motives behind the current restrictions.

The slowdown extends beyond copper to other key exports. Coal shipments through the same crossing have fallen to just over 1,000 vehicles per day from a standard 1,300. In the first nine months of 2026, Mongolia exported 2 million tons of copper concentrate. Last year, coal and copper concentrates made up 82.3% of the country's merchandise exports. China received 89.4% of all Mongolian exports in 2025. Mongolia also supplied approximately 51% of Chinese coking coal imports last year.