Mongolia has boosted coal exports to over 30 million tonnes this year. A total of 30,295,500 tonnes of coal have been exported since the beginning of 2022, which is 90% more than last year.

Frequent lockdowns along the China-Mongolia border due to COVID infections slashed Mongolia’s coal exports to 15.94 million tonnes last year, less than half of the normal levels of above 30 million tonnes between 2017 and 2020.

With COVID situation normalized and expected improved of logistics, coal-rich Mongolia boosted coal exports to China, its closest neighbor and the largest target market. Mongolia boasts proven coal reserves of 33.27 billion tonnes and geological resources of 173.5 billion tonnes. The country’s coking coal would have the most advantageous resources to compete with seaborne and Chinese domestic supplies in the Chinese market.

The railways connected with Chinese border crossings  also helped lower logistics cost and increase competitiveness of Mongolian coal. Rail lines such as Tavantolgoi-Gashuunsukhait and Zuunbayan-Khangi commissioned in 2022.

Other planned rail lines like 1,255-km-long Artssuuri-Nariinsukhait-Shiveekhuren, which would connect Russia, Mongolia and China and may open route to coking coals of Gobi Altai, Bayan Khongor and South Gobi provinces. The 150km-long Choibalsan-Khuut line could help increase lignite coal exports.

Meanwhile, the quality of Mongolian coking coal is being improved with commissioning of coal washing plants. Total capacity of dry and wet processing has achieved over 60 million tonnes currently and may increase to over 100 million tonnes in coming years.