India-Mongolia Meeting: Uranium Supplies, Mega Refinery, and Defence Cooperation in Focus
In a significant diplomatic engagement, Indian Prime Minister Narendra Modi hosted Mongolian President Khurelsukh Ukhnaa in New Delhi on October 14, 2025. This visit, the first by a Mongolian president in six years, centred on deepening bilateral ties across multiple strategic sectors. Key highlights included discussions on uranium sourcing, the development of a landmark $1.7-billion oil refinery in Mongolia, and expanded defence cooperation. The talks underscored India’s role as a reliable partner committed to Mongolia’s development and regional stability.
Strategic Partnership and Key Agreements
India and Mongolia’s relationship was elevated to a strategic partnership a decade ago during a visit by PM Modi, and since then, cooperation has steadily grown, especially in defence and security. During this visit, the two nations finalized ten agreements covering critical sectors such as digital solutions, mineral resource exploration, humanitarian aid, cultural exchanges, and immigration cooperation. One notable MoU facilitates collaboration between India's Ladakh region and Mongolia's Arkhangai province, boosting regional connectivity.
PM Modi emphasized that despite no shared border, India considers Mongolia a close neighbour and will support its development journey. Mongolian President Khurelsukh highlighted the pressing need to explore new transport and logistics gateways to enhance trade and economic cooperation between the two nations.
Uranium and Mineral Resource Collaboration
India expressed strong interest in sourcing Mongolia’s vast mineral reserves, notably uranium, crucial for India’s nuclear energy needs. Mongolia holds up to 90,000 tonnes of uranium reserves and signed an agreement earlier in 2025 with France to extract 2,500 tonnes annually. India aims to join this strategic resource partnership and will pursue dialogue in the coming months to finalize cooperation terms.
Besides uranium, discussions included potential sourcing of copper, gold, and zinc from Mongolia, aligning with India's broader mineral resource security strategy.
Mongol Refinery: A Game-Changer for Energy Security
A focal point of the visit was the ongoing construction of Mongolia’s first oil refinery, the Mongol Refinery, financed by a $1.7-billion Indian line of credit. Scheduled for completion by 2028, the refinery will process 1.5 million tonnes of crude oil annually—equivalent to 30,000 barrels per day. This mega infrastructure project, India’s largest development partnership worldwide, exemplifies India’s commitment, with over 2,500 Indian professionals working alongside Mongolian counterparts.
The refinery will strengthen Mongolia’s energy security by enabling the country to utilize its crude oil resources rather than exporting them raw. Completion and operationalization of the refinery are expected to significantly reduce Mongolia’s energy dependency and promote economic self-reliance.
Enhanced Defence and Security Cooperation
Both leaders unveiled robust initiatives to deepen defence ties, including India appointing a resident defence attaché in Ulaanbaatar, expanding joint training programs, and increasing military exercises like Nomadic Elephant and Khaan Quest. India also announced a new capacity-building program for Mongolia’s border security forces.
Mongolia has shown keen interest in India’s expertise in drone technology and cybersecurity. India established a cybersecurity training centre for Mongolia’s armed forces and continues to provide military equipment as part of its grant assistance.
Additionally, discussions between President Khurelsukh and India’s Defence Minister Rajnath Singh focused on broadening security collaboration, signaling growing mutual trust.
Cultural and People-to-People Links
To bolster cultural ties, India announced it will send relics of two disciples of Lord Buddha to Mongolia in 2026, underscoring the shared Buddhist heritage. Free e-visas for Mongolian nationals were also announced to facilitate travel and strengthen people-to-people connections. A Mongolian airline plans to launch charter flights to New Delhi and Amritsar later this year, further enhancing tourism and cultural exchange.
Consequences and Outlook
This comprehensive engagement bolsters India’s ‘Act East’ policy and strategically enhances its footprint in Central Asia through Mongolia. The partnership secures access to critical minerals like uranium, ensuring India’s growing energy and technological needs are met. The Mongol Refinery project will not only advance Mongolia's energy independence but also deepen economic ties between the two countries.
Enhanced defence cooperation contributes to regional stability in the Indo-Pacific, supporting a free, open, and rules-based order. The joint focus on cybersecurity, drone technology, and border security projects India as a key security partner in Mongolia’s modernization efforts.
Cultural exchanges and improved connectivity via new flight routes and visa facilitation will strengthen bilateral goodwill and foster broader cooperation.
Overall, the India-Mongolia partnership exemplifies a multi-dimensional and strategic cooperation with long-term benefits in energy, defence, trade, and cultural domains, promising sustained growth and stability in the region.