The World Briefly

December 07, 2022

Boiling Over

Mongolia

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Mongolian protesters tried to storm the country’s main government building amid mass demonstrations in the capital of Ulaanbaatar this week, angry over rising inflation and allegations of corruption in Mongolia’s lucrative coal industry, Al Jazeera reported Tuesday.

Police clashed with protesters as some attempted to force their way into the State Palace, which houses the parliament and the offices of the president and prime minister. Demonstrators, many of them young, called for “justice” against corrupt officials and the dismissal of the country’s legislature.

The unrest comes amid rising frustration with Mongolia’s ailing economy: Inflation has topped 15 percent following Russia’s invasion of Ukraine, and closed borders that have impacted trade with neighboring China.

It also follows whistleblower claims that a group of lawmakers with links to the coal industry has stolen billions of dollars. Last month, the country’s anti-corruption authority announced that more than 30 officials are being investigated for embezzlement, including the chief executive of the state-owned coal mining company Erdenes Tavan Tolgoi.

The company controls the Tavan Tolgoi deposits, which contain 8.26 billion tons of coking coal – an important ingredient used in the manufacture of steel and a key contributor to Mongolia’s budget.

The legislators are accused of illegally profiting from their ownership of coal mines and companies that export coal to China.

Mongolia sends 86 percent of its exports to China, with coal accounting for more than half. Mining accounts for a quarter of the country’s gross domestic product.

This story originally appeared in the December 07, 2022 newsletter, Quitting, Loudly.