Mongolia has launched a rail line that could help boost coal exports to China to 50 million tonnes a year, ending a decade-long wait for the crossing.
Today (9 September) a ceremony to mark the launch of the rail service between the Tavan Tolgoi coal field and Gashuun Sukhait on the Chinese border was held .
The 233-kilometre (145-mile) Tavan Tolgoi rail line has the capacity to export between 30 million and 50 million tonnes of coal to China annually, according to Tavantolgoi Railway LLC, the state agency that built the line.
In 2020, Mongolia exported 28.6 million tonnes of coal. Last year, exports fell to 15.9 million tonnes.
The railway is also expected to lower the cost to transport coal to $8 per tonne, compared to $32 per tonne when coal is delivered by truck, according to the railway authority.
Tavan Tolgoi is rich in coking coal, an essential ingredient in the steel-making process.
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