AGP Executive Report

UNCCD COP17 in Ulaanbaatar: Mongolia hosts the 17th Conference of the Parties to the UN Convention to Combat Desertification (Aug 17–28) under “Restoring Land, Restoring Hope,” with desertification already affecting about 77% of Mongolia’s territory; the agenda centers on drought resilience, land restoration, and linking environmental action to rural livelihoods, science, and traditional knowledge. Rangelands push: Ahead of COP17, Mongolia’s Global Pastoralist Gathering adopted three declarations (World, Women, Youth Herders) and urged they be folded into COP17 talks, with Mongolia positioning rangelands as a practical global solution. Geo-AI for minerals: China launched “Congling AI GeoDiscovery,” a geoscience-focused AI model trained on local geological data to speed up mineral exploration using remote sensing and specialized geology search. Rare earth supply race: China’s Bayan Obo rare earth mine in Inner Mongolia plans a 50% expansion with a reported $74M investment to boost ore processing capacity, tied to critical-minerals security goals. Cybersecurity alert: Kaspersky reports HoneyMyte’s CoolClient malware upgraded with a kernel-level Windows rootkit, observed in attacks targeting systems including Mongolia. Museum tech upgrade: Mongolia’s National Museum added QR guides (with audio and multilingual descriptions) across permanent exhibition halls to make heritage more accessible. AI pricing shock: DeepSeek is set to change V4 Pro/Flash billing from flat rates to peak/off-peak pricing starting Aug 16, impacting token costs for developers.

Rare Earth Supply Push: China’s Bayan Obo rare earth mine in Inner Mongolia is expanding by 50% with a $74M investment to boost ore processing, as Beijing tightens control of critical minerals for high-tech industries. Mongolia Desertification Focus: Mongolia is hosting UNCCD COP17 in Ulaanbaatar starting Aug. 17, with hundreds of Green Zone public events and a “Steppe Action” agenda aimed at restoring land and strengthening drought resilience. Rangelands & Pastoralism: A Global Pastoralist Gathering opened in Ulaanbaatar, tying rangeland management to food security and ecosystem balance, and linking Mongolia’s UN push for 2026’s International Year of Rangelands and Pastoralists. Museum Tech Upgrade: Mongolia’s National Museum added QR guides with multilingual audio and exhibit descriptions across its permanent halls, plus Wi‑Fi for deeper visitor access. Cybersecurity Alert: Kaspersky reports HoneyMyte’s CoolClient malware now hides via a Windows kernel rootkit, with attacks reportedly targeting Mongolia and other Asian countries. AI Pricing Shock: DeepSeek is raising costs for V4 Pro/Flash with peak/off-peak API billing starting Aug. 16, forcing developers to rethink compute budgets. Green Tech in China: China’s first “technology achievement supermarket” at CAS SIAT lets people scan QR codes to match research breakthroughs with enterprise needs.

Mongolia Tech & Culture: The National Museum of Mongolia rolled out QR guides across all nine halls, adding multilingual audio intros (English) and QR exhibit descriptions in Mongolian, English, and Korean, with Wi‑Fi for quick scanning on-site. AI & Cybersecurity: Kaspersky reports HoneyMyte’s CoolClient backdoor now hides behind a Windows rootkit via a signed kernel-mode driver, making it harder for defenders to remove or disrupt the malware; the upgrade has been seen in attacks including Mongolia. AI Pricing Shock: DeepSeek will shift DeepSeek V4 Pro/Flash to peak/off-peak billing starting Aug. 16, with peak multipliers and higher output token costs forcing teams to rethink inference budgets and consider alternatives. Critical Minerals: China Gold’s Jiama project in Tibet is moving toward a “super pit” expansion, targeting a jump in mining/processing capacity from 50,000 to ~160,000 tonnes per day. Green Tech & Policy: China’s landmark Ecological and Environmental Code took effect, consolidating pollution control, ecological protection, and green/low-carbon development into a unified legal framework. Mongolia-Adjacent Climate Action: COP17 desertification talks are ramping up in Ulaanbaatar, with Mongolia pushing land restoration and rangeland solutions. Space/Transport Tech: Comac’s C919 continues expanding internationally, with an Air China flight landing in Ulaanbaatar and scheduled route replacement plans underway.

COP17 Countdown in Ulaanbaatar: Starting Aug. 17, Mongolia will host UNCCD COP17, with COP17 president Battsetseg Batmunkh and Egypt’s Yasmine Fouad leading talks on restoring land and drought resilience; the Green Zone will open to the public with QR-based entry and hundreds of project showcases. Desertification & Pastoralism Focus: Mongolia’s “Steppe Action” priorities—rangelands, land–water nexus, and nature-based solutions—are tied to the International Year of Rangelands and Pastoralists, with a major pastoralist gathering kicking off in the capital. AI Infrastructure & Power Demand: A China report highlights Inner Mongolia’s Ulanqab data-center boom, where electricity use for internet services jumped 85.2% in H1 2026 as “token” capacity expands. Cybersecurity Alert: Kaspersky says HoneyMyte’s CoolClient malware now adds a kernel-level Windows rootkit, targeting countries including Mongolia. AI Pricing Shock: DeepSeek will shift V4 Pro/Flash to peak/off-peak API pricing from Aug. 16, raising costs during peak hours. Aviation Milestone for Mongolia: COMAC’s C919 completed another Beijing–Ulaanbaatar international commercial flight, signaling a growing China–Mongolia route. Rare Earth Supply Push: China’s Bayan Obo rare-earth mine in Inner Mongolia plans a 50% expansion to boost ore processing for high-tech critical minerals.

Rare Earth Supply Push: China’s Bayan Obo rare earth mine in Inner Mongolia is expanding by 50% with a reported $74M investment to boost ore processing, underscoring Beijing’s push to secure critical minerals for high-tech manufacturing. AI Infrastructure & Power Demand: DeepSeek is raising API prices with peak/off-peak billing starting Aug 16, while Inner Mongolia’s data-center boom (including Ulanqab’s “tokens” push) shows how compute growth is driving electricity demand and green-power strategies. Aviation Milestone for Mongolia Route: Comac’s C919 completed another international commercial flight, landing in Ulaanbaatar and signaling China’s push to compete with Boeing/Airbus on regional routes. Desertification Data Ahead of COP17: Mongolia released an updated National Desertification Atlas showing 81.9% of territory affected, with satellite-and-GIS methods and new water scarcity/biodiversity indicators ahead of COP17 talks in Ulaanbaatar. Local Tech & Mobility: Ulaanbaatar’s school bus program is expanding again, aiming to cover more grades and routes to reduce traffic while improving student transport. Biotech/Science Spotlight: New research links ancient Arctic rodent-like mammals to East Asia, including a lineage traced back to modern-day Mongolia.

Mongolia-Russia Research: The Chinggis Khaan National Museum hosted a scientific roundtable on ethnocultural factors in Mongolia–Russia relations, spotlighting decades of joint Soviet-era expeditions and classic ethnographic work. Desertification Data Update: Mongolia’s Cabinet-backed update to the National Desertification Atlas reports 81.9% of the country affected by desertification and land degradation (1991–2025 data), adding water-scarcity and biodiversity indicators for COP17 planning. AI Governance: Mongolia established a National AI Council to coordinate big-data and AI initiatives across sectors, with the PM leading and ministers as vice chairs, aiming to close gaps flagged in international AI readiness rankings. Aviation Tech Leap: COMAC’s C919 completed its first scheduled international commercial flight, landing in Ulaanbaatar via a bilateral airworthiness recognition pathway—an important signal for aircraft certification outside Western systems. Rare Earth Supply Chain: China is expanding the Bayan Obo rare earth mine in Inner Mongolia by 50% (about $74M) to boost extraction and processing capacity for high-tech demand. Green Computing Push: Inner Mongolia’s Horinger New Area is scaling “green computing” for AI and big data, using wind/solar-backed power and low-carbon data center systems. Space Industry Setback: China’s Long March 7A rocket exploded 85 seconds after launch due to a hydraulic failure, destroying the Zhongxing-4B telecom satellite. Health & Spillover Warning: A new report-style feature revisits how animal-to-human spillover (highlighted by H5N1) is reshaping global health risk after the pandemic era.

Mongolia’s AI push: Mongolia’s Cabinet approved creating a National AI Council, with the Prime Minister to lead and key ministries to coordinate, aiming to turn scattered AI and big-data initiatives into a national strategy after low AI-readiness scores. Desertification data update: The updated National Desertification Atlas was presented, using satellite and GIS work through 1991–2025, showing 81.9% of Mongolia’s territory affected and adding water-scarcity and biodiversity indicators ahead of COP17. Aviation milestone: Air China’s C919 completed its first scheduled international commercial passenger flight from Beijing to Ulaanbaatar, enabled by bilateral airworthiness recognition with Mongolia’s regulator. Energy & industry planning: Mongolia’s Cabinet moved to unblock the Altanshiree oil refinery project, issuing directives to remove legal bottlenecks, expand fuel storage reserves, and train specialized refinery staff. STEM and education reform: ADB’s new Mongolia country director met the education minister, discussing reforms including digital transition, teacher development, vocational training, and a planned USD 130m education-sector loan. Space/tech in the region: China’s Long March 7A rocket failed 85 seconds after launch in Inner Mongolia, destroying a telecom satellite and sparking minor local fires. Green computing in China: Inner Mongolia’s Horinger New Area highlighted “green computing” growth, powered largely by renewables for data centers.

Aviation Milestone: China’s COMAC C919 has completed its first scheduled international commercial passenger flight, landing in Ulaanbaatar from Beijing under a bilateral airworthiness recognition pathway, with Air China CA723/CA724 now set for regular daily service. AI Governance: Mongolia’s Cabinet approved creating a National AI Council to coordinate big-data and AI initiatives across sectors, with the Prime Minister leading and key ministries serving as vice chairs. Energy & Industry: The government moved to unblock Altanshiree’s oil refinery construction by resolving tax/debt issues, speeding permits, and planning specialized training, while also issuing large-scale financing for fuel storage reserves. Environment & Data: Mongolia presented an updated National Desertification Atlas using satellite and remote-sensing methods, adding indicators like water scarcity and biodiversity degradation. Climate Pressure: Reports highlight July 2026 as tied for the hottest July on record, underscoring rising extreme-weather risk for Mongolia and the region. Tech Talent for AI Infrastructure: DeepSeek posted civil engineering and energy-related jobs for data center buildouts in Beijing, Hangzhou, and Ulanqab, signaling a push deeper into infrastructure. Critical Minerals Race: China is expanding the Bayan Obo rare earth mine in Inner Mongolia with a $74M investment to boost extraction and processing capacity.

Aviation & Industry: China’s COMAC C919 has started regular international commercial service with its first scheduled Beijing–Ulaanbaatar flight, landing in Mongolia after a water-cannon salute—an important PR step, but still limited by foreign components and lack of US/EU regulator approval. Energy Infrastructure: Mongolia’s PM N. Uchral visited India-facilitated construction of the strategic oil refinery project in Dornogovi, praising 3,700 Indian engineers and saying the project is ~60% complete while Mongolia will push for faster delivery and grant “Technological Industrial Park” status. AI Infrastructure: DeepSeek is hiring civil, electrical, HVAC, automation, energy, and communications roles for data center build-outs across Hangzhou, Beijing, and Inner Mongolia’s Ulanqab—signaling that infrastructure depth is becoming part of the AI product. Grid-Scale Storage: China connected a 1 GW / 4 GWh grid-forming LFP battery in Inner Mongolia, aiming to boost stability for renewables at gigawatt scale. Mining & Critical Minerals: China is expanding the Bayan Obo rare earth mine in Inner Mongolia with a $74M investment to modernize extraction and processing, reinforcing supply for high-tech manufacturing. Mongolia Tech & Science Events: Ulaanbaatar hosts the 13th International Congress of Mongolists (Aug 13), and KHARKHORUM 360° is set for Aug 22–23 with a massive 300m digital screen.

Aviation & Trade: China’s Comac C919 is set for its first international commercial flight, landing in Ulaanbaatar—an early test of China’s push to challenge Boeing/Airbus. Energy & Industry: Mongolia’s PM Uchral visited the strategic oil refinery site in Dornogovi and thanked India’s workforce and support; construction is reported 60% complete. Mining & Critical Minerals: China is expanding the Bayan Obo rare-earth mine in Inner Mongolia, aiming to boost ore processing and secure supply for high-tech manufacturing. AI for Weather: China’s weather agency is using domestically built AI models for typhoon monitoring, with an international version reaching developing countries including Mongolia. Digital Mining: Sandvik launched xCell Banshee and xCell Hydra for digital ground support monitoring, unveiled at an ACG Caving Conference in Ulaanbaatar. Climate & Health: July 2026 tied as Earth’s hottest July on record, while Mongolia-linked brucellosis research highlights multi-system disease risks. Urban Tech: Ulaanbaatar approved the Selbe Smart City special economic zone, targeting housing and infrastructure delivery for 45,000 residents. COP17 Steppe Plan: Mongolia presented the Steppe Action Agenda to align desertification, climate, and biodiversity commitments for COP17.

AI for Weather: China’s weather agency is rolling out domestically built AI models for typhoon monitoring, including an open-source “Fenghe” large language model aimed at global risk alerts—Mongolia is listed among early users. Digital Mining in Mongolia: Sandvik launched xCell® Banshee and xCell® Hydra at an ACG Caving Conference in Ulaanbaatar, bringing digital ground support to track rock bolt performance and underground ground behavior in real time. Energy Infrastructure in Mongolia: Mongolia began initial commissioning of a new 70 MW thermal power plant in Sukhbaatar, Selenge, to ease electricity and heating shortages and cut reliance on external sources. Local Tech & Smart Living: Ulaanbaatar City Council approved the “Selbe Smart City” special economic zone, with 158 hectares planned for 45,000 residents and about 16,000 jobs, targeting “20 minutes” access to daily services. Rare Earth Supply Race: China is expanding the Bayan Obo rare earth mine in Inner Mongolia by 50% (to 15 million tons ore annually) with major investment, underscoring the strategic push for critical minerals. Mongolia’s Research Community: The 13th International Congress of Mongolists opened in Ulaanbaatar under “Tradition and Modernity,” highlighting ongoing academic work and digitalization in Mongolian studies. Coal Seam Gas Progress: TMK Energy reported rising gas output at its Gurvantes XXXV project in southern Mongolia and advanced engineering for a gas-to-power pathway.

Mongolian Research & Digital Culture: The 13th International Congress of Mongolists opened in Ulaanbaatar under “Mongolian Studies: Traditions and Modernity,” gathering scholars from 30 countries to run until Aug 13, with a strong push on modern research methods and digital support. Festival Tech & Sustainability: KHARKHORUM 360° returns Aug 22–23 with five eras of Mongolian history reimagined in digital art, plus an eco plan tied to COP17 goals—“One Ticket - One Tree - One Heritage”—and a new 300m x 12m 360-degree screen at the Central Stadium. Smart City Housing Delivery: Ulaanbaatar City Council approved the “Selbe Smart City” special economic zone, covering 158 hectares and aiming for 45,000 residents, with engineering and construction underway and job creation projected at about 16,000. Energy Infrastructure in Mongolia: Initial testing started at a new 70 MW thermal power plant in Sukhbaatar soum, Selenge, with commissioning targeted for October to ease electricity and heating shortages. AI Infrastructure in China (Regional Tech Impact): China’s largest AI industrial park launched in Ulanqab, anchored by Envision’s Galaxy Campus, drawing attention from major AI players as Inner Mongolia scales clean-energy compute. Desertification at COP17: The Middle East Green Initiative will showcase regional land-restoration work at UNCCD COP17 in Ulaanbaatar (Aug 17–28), highlighting nature-based solutions and large-scale tree planting targets.

Mongolia Energy: A new 70 MW thermal power plant in Sukhbaatar soum, Selenge, has started initial testing after its first boiler ignition, with commissioning targeted for October to ease winter electricity and heating shortages; the turnkey project (Raid Mongolia LLC, MITIME Group) will deliver about 440.2 million kWh to the grid and 373,000 Gcal of heat annually, using a modular carbon chimney design. Mongolia Smart City: Ulaanbaatar’s City Council approved the “Selbe Smart City” special economic zone, with the Selbe Sub-Center project planned across 158 hectares (2024–2029) to build 8,575 homes for about 45,000 residents and create around 16,000 jobs. Mongolia Research & Culture: The 13th International Congress of Mongolists opened in Ulaanbaatar under “Mongolian Studies: Tradition and Modernity,” spotlighting Mongol history, language, and culture research. Mongolia–US Tech for Defense: Mongolia’s Deputy Defense Minister met a U.S. Naval Postgraduate School delegation to discuss modernizing Mongolia’s defense system, including cybersecurity, AI, and engineering training cooperation. AI Infrastructure (China): Envision Group completed a major AI computing facility phase in Ulanqab, Inner Mongolia, aiming to pair large-scale compute with nearby clean power. AI Pricing: DeepSeek warned users of a significant price increase, ending the era of ultra-cheap AI services. Global Fossil Trade: Scientists warn that record dinosaur auction prices are fueling illegal fossil smuggling, including cases tied to Mongolia. UNCCD & Land Restoration (Mongolia): The Silk Road Caravan has entered Mongolia ahead of COP17, traveling through key aimags to meet herders and showcase rangeland restoration work.

Energy Infrastructure: Mongolia has started initial testing at a new 70 MW thermal power plant in Sukhbaatar soum, Selenge, after the first boiler ignition. Built by Raid Mongolia LLC with Cambodia’s MITIME Group, the plant has two 35 MW turbine generators and is set to commission by October 2026 ahead of winter demand, targeting 489.2 million kWh electricity annually plus 373,000 Gcal of heat. AI Compute Race (Regional): China’s Envision Group says it has completed a major AI computing facility in Ulanqab, Inner Mongolia, designed for 1 million chips in parallel and scaling toward multi-gigawatt clean-energy AI campuses—highlighting how power availability is driving AI infrastructure. Defense Tech Cooperation: Mongolia’s Deputy Defense Minister met the U.S. Naval Postgraduate School delegation to discuss modernizing Mongolia’s defense system, including cybersecurity, AI, and engineering training. Digital Government Push: Mongolia is moving ahead with “Chuluulye,” aiming to digitize public operations and shift at least 80% of government data exchanges to digital format in 2027 under the “Once-only” principle. Energy Markets & Payments: Golomt Bank opened a direct correspondent account in UAE dirhams with Mashreq Bank, cutting intermediary steps for Mongolia–UAE transfers and speeding settlements. Ecosystem & Land Restoration: The UNCCD Silk Road Caravan has entered Mongolia, traveling through multiple aimags to support rangeland restoration and drought resilience ahead of COP17 in Ulaanbaatar. AI Pricing Pressure: DeepSeek is warning users of a “significant” price increase for its AI services, signaling that ultra-low pricing may be unsustainable as infrastructure costs rise.

Energy & Heating: Mongolia’s new 70 MW thermal power plant in Sukhbaatar soum (Selenge aimag) has started initial testing after its first boiler ignition, with commissioning targeted before the winter peak; it’s designed to cut electricity and heating shortages and reduce energy dependency. AI Infrastructure: China’s Envision Group has put its Envision Galaxy Campus AI computing industrial park into operation in Ulanqab, Inner Mongolia—2 GW planned capacity, powered mainly by renewables, and positioned as a major “green AI” hub. Mining Automation: Komatsu hit a milestone in autonomous mining, commissioning its 1,000th ultra-class autonomous haul truck, signaling broader integration of autonomy, electrification, and mine planning. Digital Government: Mongolia’s “Chuluulye” initiative pushes digitization of public services, aiming to move at least 80% of government data exchanges online in 2027 and enforce the “Once-only” principle. COP17 & Land Restoration: The Silk Road Caravan has entered Mongolia ahead of UNCCD COP17, touring rangelands and restoration sites to support drought resilience and pastoral livelihoods. Science & Heritage: A Nature paper highlights a 83-million-year-old Gobi fossil that reshapes understanding of ancient mammal evolution. Culture Tech: The Mongol-empire anime Jaadugar: A Witch in Mongolia released Episode 7 summary and preview cuts.

Mongolia Tech & Policy: Mongolia’s “Chuluulye” push to digitize government services is moving fast, with a directive to shift at least 80% of government data exchanges online in 2027 and enforce the “once-only” rule so citizens aren’t asked for info the state already has. UNCCD & Land Restoration: The Silk Road Caravan has entered Mongolia ahead of COP17, touring Dundgobi, Uvurkhangai, Arkhangai, Bulgan and Tuv, meeting herders and researchers and visiting Khustai National Park, Orkhon Valley (UNESCO) and Ugii Lake (Ramsar) to share drought and rangeland restoration solutions. Clean Energy + AI Infrastructure: China’s Envision Group has started operating the Envision Galaxy Campus in Ulanqab, a 2GW renewable-powered AI computing industrial park aimed at gigawatt-scale “green AI” workloads. Home Efficiency for Cleaner Air: The EU-funded SOAP II project (2022–2026) helped ger-area households insulate homes and cut fuel use, improving winter comfort and reducing air pollution. Local Economy Watch: Mongol Bank revised its inflation outlook slightly higher, citing meat, fuel and regulated service fee pressures. Culture-Tech Crossover: A Mongol-empire themed anime, “Jaadugar: A Witch in Mongolia,” is streaming internationally on Crunchyroll.