More properly known as
Ulaanbaatar
but also known as Ulan Bator.
Pronounced As: both: oolän bätôr
It is situated at the foot of the Bogdo Khan Uul, which rises 3,000 ft (914 m) above the city. The city itself is the heart of Mongolia, and is the center of its transportation network. Major industries of the city include woolens manufacturing, leatherwear, paper, iron casing, glassware, beer and spirits, and processed food. Coal is mined nearby to provide power for the city.
The city also serves as a stop on the Trans-Siberian Railroad, which links Moscow and Beijing,as well as Vladivostock, and probably should be counted as one of the world's most amazing construction efforts - albiet mainly via gulag labor.
Ulaanbaatar was founded as a monastery city in 1649, and actually still perserves the monastery quarter, as well as the residence of The Living Buddha, the former spiritual leader of Mongolia. Prior to its becoming the capital in 1924, with Russian "help", the city was known as Urga, which means palace, a reference to its to it's holding of the Living Buddha's house.
The city itself houses a variable population a bit under one million people, and is, indeed the world's coldest capitol. Temperature variation is between -32 to -18 Celsius in January to 11 - 22 Celsius in summer months.
Thanks to the Electric Library for information