According to the officials, Mongolia’s coal export exceeded anticipation in 2017. However, the transport issues in Gashuunsukhait- Gantsmod border checkpoint still needs to be resolved.
Mongolia extracted a total of 47.5 million tons of coal and sold 40.7 million tons, of which 33.3 million tons of coal has been exported abroad. The amount is significantly higher compared to the expected level of 32 million tons in 2017. Furthermore, the coal export increased by 29.1 percent in the year-over-year comparison.
Erdenes Tavan Tolgoi JSC has failed to reach its forecast amount of 11 million tons. As for Energy Resource, the company had a plan to start operation of concentration plant in the fourth quarter of 2017; however, the sharp decrease of entrance capacity in Gashuunsukhait-Gantsmod border checkpoint had an impact in the company’s operations. Additionally, the Minister of Mining and Heavy Industry informed that the issues at the border checkpoint can be settled with a high-level meeting between Mongolia and China. According to the authorities of the border checkpoint, around only 10 coal trucks were passing through Gashuunsukhait-Gantsmod as of last Thursday.
Approximately 300 coal trucks were entering the border checkpoint in the beginning of 2018; however, Winsway Enterprise, one of the mining companies transporting coal through Gashuunsuhait-Gantsmod route, protested in China and caused the Chinese Government to halt the transport road near Gantsmod border checkpoint. According to the Ministry of Mining and Heavy Industry, the company issued twelve demand from Gantsmod, which also included the Mongolian side to restore coal transport from Tavan Tolgoi to Gashuun Sukhait and stop the truck drivers from paying social insurance. Presently, the Ministry of Foreign Affairs and National Transportation Center are negotiation with the Chinese side.