Mongolia is the new hot spot for investment as it has the resources that China needs, said Mandar Jayawant, managing director at Frontier Investment Partners.

There are 36 coal deposits in Mongolia and Tavan Tolgoi, Tavan Tolgoi Trans, Mongol Alt, Energy Resource companies are exporting coal to China. Coal is transported by dump trunks to Shiveekhuren, Gashuunsukhait ports. 

Baganuur coal mine has been under operation for 31 years. It mines three million tons of coal and supplies power stations. It sells 1 tons of coal for ₮16200 and receives loss of ₮3720 per ton. It has been making request to liberate coal price since 2000 and the Government hasn’t made any decisive step towards the problem. Due to this accumulated problems, it has debt of ₮89.9 billion and accumulated loss of ₮32.5 billion. But it has total assets of ₮67.9 billion. If it continues, company condition will become worse. Only decision is to liberate coal price.

Bloomberg reported that Mongolia Energy Corporation has signed a USD 206 million agreement with a contract miner to extract coal from its pit in the west of the country.