Coal, iron ore, copper concentrate, and gold constituted 86% of Mongolia's total export value from January to August 20204, with coal alone accounting for a lion's share of 58%, said an official from Monglyn Alt (MAK) LLC at an industry summit this week.

During the same period, Mongolia's export value exhibited a year-on-year increase of 6%, amounting to $10.6 billion. The growth was significantly driven by the export of coal and coal products, which increased by $372.4 million, Naran-Ochir Enkhtulga, market researcher of the company, said at the coal market summit held in Nanning, Guangxi in southwestern China.

Mongolia does not import coal and relies entirely on domestically mined coal, enhancing energy security for the country's power plants and factories. Coal reserves are estimated at 1.07 trillion tonnes worldwide, with the total registered coal reserves in Mongolia at 34.6 billion tonnes, 3.2% of the world's total.

In this landlocked country, coal is sold directly as raw coal after mining and is also processed in domestic washing plants for export. Over 90% of Mongolia's trade activities have been conducted with China.

Mongolia's Gross Domestic Product (GDP) grew by 5.6% year on year in the first half of 2024. The mining industry, in particular, made a notable contribution to the overall economic growth, accounting for 1.83% of the total growth during the period, Enkhtulga added.

In addition, 82% of foreign direct investment was directed towards the mining industry during the first two quarters of 2024.

Mongolia's export revenue is expected to surpass $18.8 billion by 2025 and further exceed $21 billion by 2026.

The primary ports for Mongolia's coal exports to China include Gashuunsukhait, Shiveekhuren, Hangi, Bulgan, and Zamiin-Uud, which are essential for efficient coal shipments and supporting bilateral trade and economic cooperation between Mongolia and China.

In the first eight months, coal exports from three major ports of Gashuunsukhait, Shiveekhuren and Hangi reached 49.2 million tonnes, jumping 34% year on year. Coal offtakes via these three ports took up 92% of Mongolia's total exports of coal.

The country's coal export volume reached 55.4 million tonnes over January-August, rising 30% or 12.7 million tonnes from a year ago.

It is understood that the government has established an ambitious target to export 83.3 million tonnes of coal by 2025, with gradual increases forecasted, aiming for 99 million tonnes by 2026 and 111 million tonnes by 2027.

In its 2024-2028 plan, the Mongolian government aims to enhance trade efficiency by constructing cross-border connecting railways and freight transfer stations at the border ports of Gashuunsukhait-Ganqimaodu, Hangi-Mandula, and Shiveekhuren-Ceke.

Once upon the implementation of its infrastructure development project, Mongolia's total coal export capacity is expected to expand by 40 million tonnes, including 20 million tonnes at Gashuunsukhait-Ganqimaodu port, 10 million tonnes at Hangi-Mandula, and 10 million tonnes at Shiveekhuren-Ceke. Notably, the coal export capacity of railways will increase 3-fold by then.