Friday, May 16, 2025

Mongolia Boosts Coal Exports with Port Expansion Plans

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Mongolia is making strategic moves to enhance its coal export capacity. More than 1,000 coal trucks cross the border daily through Gashuunsukhait port, handling 55% of coal exports and 60% of copper concentrate exports. To further improve coal transportation and optimize trade, a Government Working Group recently visited the key border ports of Khangi, Gashuunsukhait, and Shiveekhuren.

Eight companies exporting coal through Shiveekhuren port reported challenges affecting their operations. Last year, they exported 24 million tons of coal. They plan to increase that number to 25–26 million tons in 2025. To achieve this goal, they requested government support in reducing mining costs and addressing logistical issues.

The Government Working Group, led by Minister of Industry and Mineral Resources Tuvaan Tsevegdorj, Minister of Finance Javkhlan Bold, and Minister of Road and Transport Delgersaikhan Borkhuu, visited the ports. They examined ways to speed up exports, resolve coal stockpiles at the border, and increase foreign exchange reserves. They also pledged to present company proposals at an upcoming Cabinet meeting.

Khangi port, one of Mongolia’s largest trade hubs, plays a crucial role in economic growth. Expanding its capacity will increase trade and ease pressure on Zamiin-Uud and Gashuunsukhait ports. A new railway connection between Mongolia and its trading partner will turn Khangi port into a major export gateway.

Mining companies raised concerns about rising costs. Mines are getting deeper, transportation routes are longer, and soil stripping has increased. They requested the government to reconsider coal royalty benchmark prices and address the labor shortage in the mining industry.

Officials were assigned to improve coal transport at Shiveekhuren port, which recently slowed due to network failures. They also visited the Shiveekhuren-Sekhe railway project, the container terminal, and an automated guided vehicle (AGV) transportation site.

Additionally, the working group inspected a coalbed methane project by Telmen Resource. Mongolia is currently running three coalbed methane exploration projects in Umnugobi aimag. This resource could provide a new source of energy and reduce air pollution.

By tackling logistical issues, expanding infrastructure, and optimizing export processes, Mongolia is set to strengthen its position in the global coal market. The improvements at Khangi port and other key locations will drive economic growth and enhance trade efficiency.

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