Mongolia's coal output soared in September

The value of Mongolia’s coal output increased 217 per cent from August to September, according to data released by the National Statistics Office.


Trucks at the Ukhaa Khudag mine site. (Credit: MMC)

The data shows that the value of gross coal output increased from 199.1 billion togrogs in August to 431.7 billion in September as volumes recover from a pandemic-induced drop in the first half of the year.


A similar increase was seen in coal sales, which jumped from 244.2 billion togrogs to 496.5 billion.


The Mongolian Mining Corporation, the country’s largest producer of coking coal, has also reported dramatic increases in figures released this week: a 198 per cent increase in coking coal output in the third financial quarter compared to the second.


The rise in Mongolian output may have given China the confidence to put the brakes on coal imports from Australia last week, when several state-owned power companies and steel mills received ‘verbal instructions’ to stop buying Australian coal. There are also media reports circulating that two Australian coal ships have been diverted to India.


However, there are mixed opinions on whether China’s ban on Australian coal will impact Mongolian exports. According to sources cited by Argus Media, Beijing may be using this increase in Mongolian coat output as a short-term opportunity to ‘punish’ Australia without threatening its own supplies.


On the other hand, S. Bold-Erdene has told BloombergTV that the ban ‘won’t have a strong impact on Mongolia.’

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