Mongolia’s Cabinet has established a working group to advance a major coal deposit. This move accelerates strategic resource development at the Borteeg block within Tavan Tolgoi. Consequently, the government launched an international Expression of Interest on January ninth. Therefore, this resource development initiative invites investor proposals for the substantial site. The deposit contains an estimated four hundred twenty-four million tons of coal.
The Borteeg block lies within a special license area owned by Erdenes Tavan Tolgoi JSC. This state-owned entity controls several other major deposits in the region. According to a 2020 feasibility study, ninety-five percent is coking coal. Furthermore, a new feasibility study is scheduled for completion this quarter. This updated assessment will guide the forthcoming investment and operational plans.
Last year, a prior service contract for the site was terminated notably. The MTAS Partnership originally won a tender for services in 2021. This group was allegedly affiliated with a former parliamentary speaker. However, authorities terminated that contract during the course of 2025. This reset allows the new working group to pursue fresh investor partnerships.
Mongolia’s coal exports have demonstrated strong growth recently. They rose fourteen point four percent year-on-year in 2024 to 95.8 million tons. Moreover, total exports over eight years reached 412.3 million tons. Interestingly, the Borteeg reserve alone roughly matches that eight-year export volume. This comparison highlights the block’s immense scale and potential economic impact.
The dominance of low-grade coking coal is a particularly positive signal. This coal type commands higher prices and stronger demand than thermal coal. Consequently, developing Borteeg could significantly increase state revenues. It may also enhance the national wealth fund and public benefits. The government views this resource development as a solution for key social challenges.
This project carries substantial implications for Mongolia’s economic future. It represents a major opportunity to leverage natural resource wealth. Success depends on attracting capable international mining investment. The development must also balance economic gains with environmental considerations. Ultimately, the project could transform the nation’s fiscal stability and growth trajectory.
Future steps include evaluating investor proposals and finalizing the new feasibility study. The government will likely award development rights later this year. Successful operation could position Mongolia as a key global coal supplier. It also underscores the ongoing global demand for steel-making metallurgical coal. This strategic resource development remains central to Mongolia’s industrial policy.
