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However, Rio put an expansion of the project on ice in 2013 after Mongolia raised concerns about costs and repeated attempts to amend a 2009 investment agreement for the project.Construction finally resumed last year after the release of .4 billion in project financing from lenders in December 2015.
Mongolia is entirely landlocked, between China and Russia.
Modern day Mongolia consists of what was historically Outer Mongolia (so called when it was part of China).
The province of Inner Mongolia is politically separate and is in the northern part of China, sharing common borders with modern-day Mongolia.
Ganbaatar replaces MPRP chair and controversial former president Nambar Enkhbayar, who has not been allowed to stand by the election commission because of registration irregularities and his conviction for graft in 2012.
An Ulaanbaatar-based spokesman for Rio Tinto declined to comment on Ganbaatar's nomination.