Mongolia and China Launch Long-Term Coal Transport Agreement

Strategic Insights -

As part of the Agreement between the Governments of Mongolia and the People's Republic of China, the Mongolian Railway State-Owned Joint Stock Company has signed a Long-Term Coal Transport Agreement with China Coking Coal Energy (Tianjin) Company, a subsidiary of China Energy Investment Corporation. The agreement aims to transport 247 million tons of coal over 16 years, with the first shipment of 30,000 tons having been received by the Chinese side. The Mongolian government is targeting revenue of USD 3.7 billion in current value from the coal transport.

Key Takeaways:

  • The Long-Term Coal Transport Agreement between Mongolia and China is expected to transport 247 million tons of coal over 16 years.
  • The revenue projection for Mongolia from the coal transport is USD 3.7 billion in current value.
  • The Mongolian Railway, the transport operator, aims to transport five million tons of coal this year, requiring an average of over 800,000 tons per month.
  • The construction of the Gashuunsukhait-Gantsmod cross-border railway is expected to be completed within 700 days.
  • China Energy International plans to send 30 percent of its workforce to Mongolia this year and establish a local company within the month.
  • The coal transport will initially use a combination of rail and road, with nine trains transporting the coal.
  • The agreement is expected to contribute significantly to Mongolia's national economy, but also presents challenges such as delays and restricted access to the mine.

Statistics:

  • 247 million tons of coal to be transported over 16 years.
  • USD 3.7 billion in projected revenue for Mongolia in current value.
  • 5 million tons of coal to be transported by the Mongolian Railway this year.
  • 800,000 tons of coal to be transported per month on average.
  • 9 trains transporting coal since the launch of the coal transport.
  • 30,000 tons of coal received by the Chinese side as of July 3, 2025.
  • 30% of China Energy International's workforce to be sent to Mongolia this year.

Sources:

  • Mongolian Railway State-Owned Joint Stock Company.
  • Government of Mongolia.
  • China Coking Coal Energy (Tianjin) Company.
  • China Energy Investment Corporation.
  • Ministry of Road and Transport of Mongolia.
  • China Energy International.