A majority of lawmakers voted to dismiss Gombojav Zandanshatar on Friday after weeks of political infighting and a dispute over a policy that changed how mineral exporters are taxed.

The premier is a member of the ruling Mongolian People's Party, along with President Ukhnaa Khurelsukh who blocked the sacking.

Parliament did not have a quorum when it began its session to vote on Zandanshatar's removal, the president's office said.

This made the decision invalid, the head of the president's office, Uilstuguldur Altankhuyag, and the Secretary of the National Security Council Byambajargal Altangerel said.

Mongolia's constitutional court has scheduled a meeting to discuss the president's veto on Wednesday.

Zandanshatar previously served as the president's chief of staff.

The prime minister took office in June after thousands of young people demonstrated in the capital Ulaanbaatar, venting frustration at wealthy elites, corruption and injustice.

Similar unrest forced out his predecessor, Luvsannamsrain Oyun-Erdene, after he also lost a no-confidence vote in the State Great Khural -- Mongolia's parliament.

Mongolia, which neighbours China and Russia, is rich in natural resources such as coal, gas and minerals.

But the country is facing a combustible political cocktail of widespread corruption, rising living costs and concerns over the economy.

Zandanshatar had faced criticism from lawmakers, including from his own party, over a major shift in minerals policy that would see exporters pay royalties based on domestic stock prices, rather than international benchmarks used since 2021, which critics warned could hurt the national budget.

He also drew fire for appointing a justice minister without notifying parliament, which MPs said was unlawful.