The coal is a black and dark brown coloured easily combustible one kind of sedimentary rock. Coal is formed by the residual peat of topsoil, and is classified as brown coal, coal and anthracite.
The chemical compound element is carbon, hydrogen and, in some respects, oxygen, sulfur, and nitrogen are found. It is estimated that Mongolia has 37.1 billion tons of coal. There are over 300 deposits in 15 basins in Mongolia. Total reserves are in the first 15 countries in the world. Coal exports have grown dramatically in recent years and have created a significant portion of the state budget.
The largest deposit is Tavan Tolgoi. The reserve of the deposit was estimated at over seven billion tons by JORC standard. Of these, about three billion are coking and the rest is a high-quality energy coal. The reserve is determined by the state budget. In addition, there are large deposits of Nariin Sukhait, Shivee Ovoo, Baganuur, Khushuut and Nuurst Khotgor. Nariin Sukhait deposit contains 125 million tons of coal at a depth of 100 meters. The Khushuut deposit has about 360-460 tons of coal.
Mongolia exports its explored coal only to China, with 33 million tons in 2017 accounting for only 0.5% of the country’s demand, which is too low. Therefore, there is a need to increase exports.
Our company is working actively in this area.
However, China’s imports of coal have risen 87% over the past decade and have increased by 30% in the last five years.
In addition, our company is working to exploring the opportunities to export coal to Japan, Korea and Southeast Asia.