Coal news and updates

Mongolia harnesses surging mining exports

As the world’s largest landlocked country, Mongolia relies on China for roughly 80 per cent of its exports, 60 per cent of its imports and 40 per cent of its GDP.

HIGH commodity prices and rising coal exports are propelling economic growth in Mongolia, allowing the country to develop its robust mineral resources, expand its services sector, and invest in green agriculture and energy.

Mongolia exported 31.7 million tonnes of coal in 2022, an increase in volume of 102 per cent, or 16 million tonnes, from 2021 and an increase in export revenue of 135 per cent, or US$6.5 billion, due to higher coal prices, according to data from the Mongolian Customs General Administration. These figures undergirded economic growth of 4.7 per cent in 2022, with Mongolia forecast to grow by 5.2 per cent in 2023.

As the world’s largest landlocked country, Mongolia relies on China for roughly 80 per cent of its exports, 60 per cent of its imports and 40 per cent of its GDP. It exported 29.8 million tonnes of coal to China in 2022, which was up 104 per cent from 2021 and accounted for 94 per cent of Mongolia’s total coal exports.

China’s economic recovery in the first quarter of 2023 is enabling Mongolia’s cross-border trade with its southern neighbour to return to pre-pandemic levels. Mongolia exported 13.8 million tonnes of coal – of which 13.5 million tonnes went to China – from January to March, for a total of US$2.2 billion, up 232.2 per cent year-on-year.

In February Mongolia also started conducting coal-trading contracts through auctions on the Mongolian Stock Exchange, ending the practice of direct contracts with foreign buyers. Using so-called border prices that factor in transport fees, the new electronic trading platform brings transparency and ease to the coal export process.