Page | 40Energy Resources..........................................................................................................
Mongolia possesses significant coal and lignite
deposits that are presently being extracted in
roughly 30 open-pit mines.207,^208 Coal production
increased dramatically in 2008 after a new coal
mine in the Gobi Desert began operations. The
Erdenes Tavan Tolgoi mine, which is state owned,
is very close to the Chinese border and provides
exports to China.^209 Among the 6 billion tons of
reserves being tapped by the mine are deposits of
coking coal, an important ingredient for making
steel. This is economically advantageous to Mongolia given that China, home of the
world’s largest steel industry, is one of Mongolia’s two neighbors.^210
As a result of mining operations, coal generated nearly 19% of Mongolia’s total export
revenues in 2009 compared to less than 3% in 2006.
211, (^212) With another big jump in coal
exports in 2010, Mongolia’s share of China’s coal exports rose from 11% to 39%.^213
Most of Mongolia’s coal that is not exported to China is used internally to run the
nation’s five power plants and to fuel home stoves used for heating and cooking.^214
(^207) Susan Wacaster, U.S. Geological Survey, “The Mineral Industry of Mongolia,” in 2009 Minerals
Yearbook, February 2011,
http://minerals.usgs.gov/minerals/pubs/country/2009/myb3-2009-mg.pdf
(^208) Global Methane Initiative, “Chapter 22: Mongolia,” in Coal Mine Methane Country Profiles, December
2010, 174, http://www.globalmethane.org/documents/toolsres_coal_overview_ch22.pdf
(^209) South Gobi Resources, “Ovoot Tolgoi,” n.d., http://www.southgobi.com/s/OvootTolgoi.asp
(^210) Michael Kohn, “Mongolia Targets Global Mining Role as Investments Soar,” BBC News, 20 April
2011, http://www.bbc.co.uk/news/business-13078336
(^211) International Trade Centre, “Trade Performance HS: Exports and Imports of Mongolia–27 Mineral
Fuels, Oils, Distillation Products, etc (2006, in USD Thousands),” 2011,
http://www.intracen.org/appli1/TradeCom/TP_TP_CI_HS4.aspx?IN=27&RP=496&YR=2006&IL=27
Mineral fuels, oils, distillation products, etc&TY=T
(^212) International Trade Centre, “Trade Performance HS: Exports and Imports of Mongolia–27 Mineral
Fuels, Oils, Distillation Products, etc (2009, in USD Thousands),” 2011,
http://www.intracen.org/appli1/TradeCom/TP_TP_CI_HS4.aspx?IN=27&RP=496&YR=2009&IL=27
Mineral fuels, oils, distillation products, etc&TY=T
(^213) Michael Sainsbury, “Mongolia Heats Up the Market for Coal Exports,” The Australian, 9 September
2010, http://www.theaustralian.com.au/business/mining-energy/mongolia-heats-up-the-market-for-coal-
exports/story-e6frg9e6-1225916136003
(^214) T. Bulgan, “Air Pollution and Coal Fired Power Plants,” North-East Asian Subregional Programme for
Environmental Cooperation, 2009,
http://www.neaspec.org/documents/airpollution/PDF/S2_17pm_Bulgan.pdf