State-owned mines want coal prices increased

Representatives of coal mining companies
urged the Government to raise coal prices at a meeting on September 18.
Officials from the Baganuur and Shivee-Ovoo mines, the two major suppliers to
power and heating plants, pleaded that they were in a very difficult situation
as no significant investment is made to upgrade their technology while prices
were kept frozen. This has led to accumulated loss for them and their revenue
can rise only if they are allowed to charge a competitive price for their coal
without delay. Authorities of the Shariin Gol mine said they might not be able
to meet the coal needs of Darkhan-Uul and Selenge aimags.

Minister of Minerals and Energy D.Zorigt said
the Government is examining the suggestion of the Energy Coordinating Office to
raise coal prices in stages. The Government would also review next month the
question of increased state subsidy for mining companies. He also said MNT12.2 billion
will be spent on modernizing the Baganuur mine in stages, and a plan to upgrade
Shariin Gol is also under review.