New Mongolian rail link with China to boost coal exports

The 233km Tavan Tolgoi rail line also seen to cut transport costs to US$8 per tonne, a quarter of that for truck delivery

Mining-dependent Mongolia has long sought cheaper and more efficient export routes, especially to Russia and China

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The opening ceremony of the Tavan Tolgoi-Gashuun Suhait railway was held on September 9 at Umungovi province, Mongolia. Photo: Twitter

Published: 5:46pm, 12 Sep 2022

Mongolia has launched a rail line that could help coal exports to China hit 50 million tonnes a year, the country’s president said, ending a decade-long wait for the crossing.

A ceremony to mark the launch of the rail service between the Tavan Tolgoi coalfield and Gashuun Sukhait on the Chinese border was held on Friday.

Mongolian President Ukhnaa Khurelsukh was among the dignitaries in attendance, according to his website.

President Ukhnaa Khurelsukh attended the opening ceremony for the long-awaited railway service to the Chinese border. Photo: Reuters

Mongolia is heavily dependent on mining and has long sought cheaper and more efficient ways to export its minerals abroad, with a national strategy in place to expand its rail network connections with Russia and China.

Mining makes up a quarter of the country’s gross domestic product.

This comes as China has stepped up its investment in coal in the face of extreme weather, an economic slowdown and a global fuel crisis.

The 233km (145 mile) Tavan Tolgoi rail line has the capacity to export between 30 million and 50 million tonnes of coal to China annually, according to Tavantolgoi Railway, the state agency that built the line.

The railway is also expected to lower the cost of coal transport to US$8 per tonne, compared to US$32 per tonne for truck delivery, according to the railway authority.