The Mongolian government is aiming to open a 258.4 km railway line, connecting Tavan Tolgoi, its largest coking coal mine in South Gobi region, to the Gashuun Sukhait checkpoint also in South Gobi bordering China by July next year; once operational, the new railway will facilitate the country’s minerals logistics whilst simultaneously substantially reducing the transportation cost for coal.

The railway line will have the capacity of handling 30-50 million tonnes/year in coal exports. It is anticipated that the domestic coal transportation cost will be reduced to a quarter compared with the current haulage cost of the trucks being used on the road from Tavan Tolgoi via the Gashuun Sukhait (Ganqimaodu) checkpoint to China.

China represents the destination of almost all Mongolian coal for export. As elsewhere in the world, the pandemic has caused a slowdown. ‘The Chinese side demanded that coal truck drivers be tested for COVID-19 at the border,’ Mongolia’s Ministry of Mining and Heavy Industry noted. Since this demand was issued, over 1000 drivers had been tested. The ministry noted it is working to fully test 3,000 drivers.

China accounted for 92.5 percent of Mongolia’s total exports and 39.1 percent of its total imports during the January-March period.