Mongolia's Coal Boom: A Double-Edged Sword in the Face of Climate Change

As the world transitions to cleaner energy sources, Mongolia is ramping up its coal production, driven by high demand from China, the world's largest coal consumer. The country's coal exports have increased dramatically, with a 135% surge to $6.5 billion in 2022, with 94% of that going to China. This coal boom has brought significant economic benefits, including triple-digit GDP growth and reduced poverty. However, the expansion of coal mining has come at a steep environmental cost, with widespread pollution, soil erosion, and degradation affecting herders and their livelihoods.

Key Takeaways:

• Mongolia produced 32.3 million metric tonnes of coal in 2021, increasing by 22% compared to the previous year, according to the World Bank.
• Coal provides more than 90% of Mongolia's electricity demand, among the highest proportions in the world, according to energy research organization Ember.
• The country's environment minister, Bat-ulzii Bat-Erdene, states that Mongolia needs coal for the next five to 10 years due to the country's reliance on coal for income and heating solutions.
• Mongolia has proven coal reserves of 33.27 billion metric tons, with 5% of its landmass covered by more than 2,700 valid mining licenses.
• The country's coal exports could reach 70 million metric tons annually by 2025, with plans to establish more round-the-clock border checkpoints and transportation links to China.
• Tens of thousands of people work at open pit mines in Tavan Tolgoi, one of the world's largest coking and thermal coal deposits, with 7.5 billion metric tons of reserves.
• A case study from two mining sites found higher rates of soil erosion in the vicinity of the mines and adjoining industrial areas.
• Mining is being linked to water, soil, and air pollution in Mongolia, directly affecting herders and their livelihoods in the steppe.

Statistics:

• Mongolia's coal exports increased by 135% to $6.5 billion in 2022.
• 94% of Mongolia's coal exports went to China in 2022.
• Mongolia's coal production increased by 22% in 2021 to 32.3 million metric tonnes.
• Coal provides more than 90% of Mongolia's electricity demand, according to Ember.
• Mongolia has 33.27 billion metric tons of proven coal reserves.
• The country has 2,700 valid mining licenses covering 5% of its landmass.
• Mongolia's coal exports could reach 70 million metric tons annually by 2025.
• Tavan Tolgoi has 7.5 billion metric tons of coal reserves.

Sources:

• Radio Free Asia
• World Bank
• Ember
• Mongolian government officials
• Davaadorj Sandagdorj, supervisor at a provincial government-owned mine
• Barkhas, contract driver
• An unnamed truck driver ferrying coal from Tavan Tolgoi to the border.