Mongolian coal exports have fallen 36% on the month to 2.52 MnT in Jul’18, against 3.91 MnT in Jun’18, according to the customs data. The steep fall in exports came after China had imposed winter steel production cuts, thereby limiting the country’s coal demand from Mongolia.
During Jul’18, China had nearly taken all the coal exported from Mongolia, while the UK had took mere 494 MT (Metric Tonne) coal during the month.
Despite the fall on the monthly basis, Mongolian coal exports in Jul’18 were 33% higher on the year compared with 1.9 MnT in Jul’17. However, the bottleneck in coal transportation to China due to congestion had slightly weighted down Mongolia’s year-to day exports.
During the first 7 months of CY18 (Jan’18-Jul’18), Mongolia has exported 20.55 MnT coal, which was slightly lower on the year compared with the corresponding period’s total of 20.85 MnT attained in CY17.
Recently, Mongolia’s giant coal mine Tavan Tolgoi had witnessed a surge in revenue during the half yearly period ended on 30 Jun’18, on the back of higher commodity prices and a jump in exports.
The project exported 6.9 MnT coal in H1 CY18, up 28% compared to the same period in CY17, while net profits increased 31% from the same period a year ago to reach 373.3 Billion Tugrik (USD 151.75 Million).
Tavan Tolgoi, is one of the world’s largest coking coal mines, but it has not yet fulfilled its massive potential. The coal projects needs to overcome severe infrastructure problems, including the construction of a rail link to China, which is Mongolia’s major export market.
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