Mongolia coal exports to hit 25 million tonnes this year

Wednesday, 22 Jun 2011

Reuters reported that Mongolia coal exports are expected to keep posting exponential gains and reach some 50 million tonnes by 2015, though infrastructure constraints are seen remaining a hurdle for the country booming mining sector.

Mr A Erdenepurev general director of the fuel policy department at Mongolian Ministry of Mineral Resources and Energy said total coal exports are expected to jump 50% from a year ago to 25 million tonnes this year and rise further to between 30 million tonnes to 35 million tonnes in 2012.

He said that Mongolia coal exports are expected to reach 50 million tonnes as the eastern section of the huge Tavan Tolgoi mine comes on stream by 2014 to 2015. He added that "Looking at our production growth over the past few years, these short term forecasts can be quite conservative."

Mongolia coal sector which accounts for a third of the country earnings has grown rapidly in the past few years to become an important coking coal supplier to China. However, a severe lack of roads, rail lines, electricity, water and skilled workers in the impoverished nation of 2.7 million people pose formidable challenges to Mongolia's mining boom.

Mr Erdenepurev said "There are 5,000 trucks per day on the road linking the southern Gobi region to the Chinese border right now and that number is going to grow and cause congestion. There is a serious need for new infrastructure but it also demands huge investments."

Mr Erdenepurev said estimated costs to build proposed railways, road, water and power stations were at least USD 3.5 billion accounting for more than half of the country's gross domestic product. (sourced from Reuters via abc.net.au)