Mongolia is set to urge China next week to approve a new railway connection aimed at expanding their already growing coal trade. Prime Minister Oyun-Erdene Luvsannamsrai will visit China on February 13 to sign an agreement for the cross-border railway and the expansion of coal production at the Tavan Tolgoi mine, a government spokesperson told Bloomberg.
While China’s Foreign Ministry declined to comment on the matter, spokesperson Guo Jiakun stated that both nations remain committed to strengthening bilateral cooperation. Mongolia was China’s fourth-largest foreign coal supplierin 2023, providing 60% of its coking coal imports. A trade boost would increase Mongolia’s revenue, while China seeks alternatives to U.S. and Russian coal due to tariffs and sanctions.
Mongolia’s parliament has already approved the railway link and allocated 976 billion tugrik ($283 million) for Erdenes Tavan Tolgoi, a state-owned miner, to fund the project, according to Ikon News. The deal with China is also expected to cover coal sales and purchase agreements.
Mongolia’s coal shipments to China soared to 83 million tons in 2024, up from 70 million in 2023 and 31 million in 2022, following the construction of a 240-km railway from the Tavan Tolgoi mine to the border. However, the gauge difference between Mongolian and Chinese railways remains a key logistical challenge.
