By Dominikus
Mongolia is rapidly expanding its coal export capacity through 14 strategic mega projects scheduled for completion between 2024 and 2028. These initiatives aim to significantly increase coking coal production and exports to key Asian markets, according to G. Namchinsuren, Director of Policy on Mineral Resources at the Ministry of Industry and Mineral Resources, speaking at the 1st Global Coking Coal Conference in Xiamen on May 22, 2025.
Central to these developments are key infrastructure projects such as the cross-border railways connecting Gashuunsukhait-Gantsmod and the Shiveekhuren-Ceke port. These will enhance transportation efficiency and streamline freight clearance processes, targeting a 40 million ton boost in coal exports and a doubling of export revenues.
Read also: Mongolia to boost coal exports to China to 100 million tons in 2025
Mongolia’s coal industry currently operates 27 coal preparation plants, with major players like Erdenes Tavan Tolgoi JSC expected to produce and sell an average of 24 million tons annually. This production level is projected to generate approximately US$1.9 billion in sales revenue and contribute around US$186 million in tax revenues.
To attract investors, the government offers substantial incentives, including tax reductions of up to 90% on exploration, extraction, transportation, and sales of minerals, depending on the distance from Ulaanbaatar. Additionally, customs exemptions are provided for value-added mineral products.
Mongolia’s coal exports have surged from 36.6 million tons in 2019 to 83.7 million tons in 2024. Coking coal accounted for 67% of total exports in 2024, despite a recent increase in thermal coal shipments. The country’s share of China’s coal imports rose from 9.4% in 2020 to 15.1% in 2024, highlighting Mongolia’s growing influence in the regional coal market.
For Indonesian coal exporters, Mongolia’s expanding capacity and government-supported infrastructure upgrades represent both competitive challenges and new opportunities in supplying the critical Asian coal markets.
Editing by Reiner Simanjuntak
