Mongolia hopes to again become a leader in coal export to China

Mongolia is going to return the leading position in the Chinese market of coal exports necessary for smelting steel by transporting raw materials through the railway, the construction of which will be completed at the end of 2015. This was stated by the Executive Director of the coal mining company Mongolian Mining Benshel Goths.

In connection with a decrease in coal prices and higher financial costs, the losses of the Mongol company in the first half of the year amounted to $ 25.2 million, against profit equal to $ 31 million, which the company helped out a year earlier.

Despite the close geographical location, in the first half of Mongolia from the Chinese market, the Australian coal delivered by a cheaper sea was supplanted, and it is possible to deliver coal to China from Mongolia only by vehicles, which significantly increases the final price of raw materials. Now supplies from this country have decreased by 36% to 6 million tons, while Australia doubled export to 13.3 million tons. To date, almost all of the Mongol coal is sold to border steel plants, since the coal coal must also be delivered to the more remote regions of China, and coal overload from vehicles to the cars will make it even more expensive.

In order to at least slightly facilitate the debt load of Mongolian Mining, the Mongol government of the country proposed to buy an asphalt road from the company. He is ready to help out $ 100 million for this transaction. He hopes to complete negotiations on the sale of the road by the end of this year.

It was also ready that the government of the country invited Beijing to expand the Chinese railway network to Mongolia, which could reduce the costs of transporting coal by $ 9 per ton.