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Mongolia launched a 233-km cross-border rail line between the Tavan Tolgoi coal field and Gashuun Sukhait on the Chinese border over the weekend and Mongolian President Ukhnaa Khurelsukh was among the dignitaries attending a ceremony to mark the launch on September 9, ending a decade-long wait for the crossing, according to an AFP report.
The Tavan Tolgoi railway has the capacity to export 30 million – 50 million tonnes of coal to China annually, the report said, citing Tavantolgoi Railway LLC, the state-owned entity that built the line. Tavan Tolgoi is rich in coking coal, an essential ingredient in steel-making.
The railway is also expected to lower the cost of transporting coal to $8 per tonne, compared to $32 per tonne when coal was delivered by truck, according to the railway authority.
According to industry newspaper China Metallurgical News, Mongolia’s coal exports surged 225.8% year over year to reach 2.36 million tons in June, marking the highest level since early 2021 and its coal exports to China jumped 224.2% in the month to hit 2.1 million tonne.
During Chinese Foreign Minister Wang Yi’s visit to Mongolia in early August, China and Mongolia reached consensus including strengthening cooperation at the border, promoting the opening of ports and connection of railways and highways to the largest possible extent, so as to keep the industrial and supply chains stable and unimpeded.
Mongolia launched a 233-km cross-border rail line between the Tavan Tolgoi coal field and Gashuun Sukhait on the Chinese border over the weekend and Mongolian President Ukhnaa Khurelsukh was among the dignitaries attending a ceremony to mark the launch on September 9, ending a decade-long wait for the crossing, according to an AFP report.
The Tavan Tolgoi railway has the capacity to export 30 million – 50 million tonnes of coal to China annually, the report said, citing Tavantolgoi Railway LLC, the state-owned entity that built the line. Tavan Tolgoi is rich in coking coal, an essential ingredient in steel-making.
The railway is also expected to lower the cost of transporting coal to $8 per tonne, compared to $32 per tonne when coal was delivered by truck, according to the railway authority.
According to industry newspaper China Metallurgical News, Mongolia’s coal exports surged 225.8% year over year to reach 2.36 million tons in June, marking the highest level since early 2021 and its coal exports to China jumped 224.2% in the month to hit 2.1 million tonne.
During Chinese Foreign Minister Wang Yi’s visit to Mongolia in early August, China and Mongolia reached consensus including strengthening cooperation at the border, promoting the opening of ports and connection of railways and highways to the largest possible extent, so as to keep the industrial and supply chains stable and unimpeded.