Prospects for the development of Mongolia’s Coal export

Abstract

In recent years, Mongolian coal export has grown and gained great importance for the country. The significant resources of high-quality coal and demand for coal in the international market contribute to the augmentation of Mongolian coal export. The expanding coal supplies to the international market affect greatly the development of coal mining in Mongolia. The paper presents the status of coal resources and the characteristics of the most ambitious projects for the development of coal export. The most significant coal development projects are mainly related to the development of deposits in the South Gobi region. Foreign companies that hold licenses for the development of deposits take part in the development of coal deposits. Current and potential future restrictions on the development of coal export are given. The main of them are the lack of access to the seacoast, as Mongolia is a landlocked country; state of transportation infrastructure; the availability of resources for the development of production, and the geopolitical conditions affecting the demand for coal in the world market. Coal exports can be delivered to the international market from the seaports of China and Russia, through the territories of these countries. Further increase in coal export from Mongolia depends on the development of transportation and production infrastructures; the situation in the international coal market; the availability of resources for the development of deposits; and opportunities to increase the volume of exploration. In the future, Mongolia could become one of the world's major coal exporters.