B. Altsukh, senior specialist at the Fuel Policy Department in the Ministry of Mineral Resources and Energy, commented in “The Mongolian Mining Journal” on private companies complaining that the coal export price is too high. Private coal mining companies want to increase its domestic price while decreasing that of its export as Mongolia exports more coal than it consumes domestically.

It is the Ministry of Mineral Resources and Energy and the Ministry of Finance who jointly set the minimum export price for coal; and for now it is based mainly on coal prices in China. Currently, this price is inclusive of VAT and transport costs and varies between USD35 and USD40 per ton. But some exporters want the price to be fixed at between USUSD10 and USUSD20.

B. Altsukh explained it does not make sense, saying exporters cannot be allowed to undercut one another as it would lead to the collapse of Mongolian coal prices. He recalled a few years ago Tavan Tolgoi coal was sold at USUSD8 per ton only and advised exporters to show solidarity, not to think only about immediate and individual profit, especially as the Chinese importers work very closely with one another.  

Favouring the establishment of a spot market for both local and foreign trade, Altsukh believes the marketing of coal should be left to professional organizations and not producers. Once this is done, opportunities will arise to sell coal not only to China, but to other countries too.  

As Mongolia now exports more coal than it consumes domestically, the State has been promoting exports and offering preferential terms all along and B. Altsukh feels it is now time to think about wider national interests.

 He concluded that coal exporting companies should have made enough profits and accumulated enough capital by now to invest in infrastructure and processing facilities, with or without State collaboration.