Mongolia coal exports surge as China shifts to land-based supply

By Dominikus

Mongolia’s coal exports are rising sharply as China increases its reliance on land-based supply, strengthening Mongolia’s position in the regional market and intensifying competition for seaborne exporters, an industry official said.

Mongolia exported about 90.02 million tonnes of coal in 2025, up from 83.75 million tonnes in 2024 and more than double the level recorded in 2022, according to Byambadagva Bayaraa, president of the Mongolian Coal Association.

The growth reflects expanding cross-border trade with China, which remains Mongolia’s primary export destination.

Mongolia accounted for around 18.6% of China’s total coal imports in 2025, placing it among the top four suppliers alongside Indonesia, Russia and Australia. Its share in China’s coking coal imports has increased, supported by proximity and lower transportation costs compared with seaborne shipments.

 “Mongolia’s coal industry continues to expand its export capacity, supported by infrastructure development and strong demand from China,” Byambadagva said at an industry conference on March 18.

The expansion is supported by large resource reserves and rising production. Mongolia holds extensive coal deposits across regions such as Umnugobi and Dornogobi, with 325 mining licenses covering coal-bearing areas.

Infrastructure improvements at border crossings have also supported export growth. The Gashuunsukhait–Gantsmod route handled about 49 million tonnes in 2025, accounting for more than half of total exports.

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Total export capacity across Mongolia’s border ports is estimated at around 161 million tonnes, with current utilization at about 55.9%, indicating potential for further increases.

Production is concentrated among several major operators. State-owned Erdenes Tavan Tolgoi exported about 28.76 million tonnes, or nearly 32% of total shipments, alongside private producers such as MAK and SouthGobi Sands.

For Chinese buyers, Mongolian coal offers cost advantages due to shorter transport distances and reduced exposure to shipping costs and freight volatility, particularly during periods of disruption in seaborne markets.

The rise in Mongolian exports comes as China adjusts its import structure, favoring more stable and cost-efficient supply channels.

Increased competition from Mongolia is expected to affect other exporters. Indonesia remains dominant in the thermal coal segment, but Mongolia’s growing presence in coking coal and its expanding share of China’s imports could influence overall demand for seaborne supply.

Mongolia’s export growth is expected to continue as infrastructure and cross-border logistics improve, with capacity available for further expansion.

Editing by Alexander Ginting