G.Battsengel, Executive Director of Energy Resources LLC, told the Coal Mongolia 2012 forum that the present state of Mongolia’s infrastructure was responsible for Mongolia’s mining industry failing to fulfil its potential. While Mongolia has made no progress in expanding its railway, Russia is building new tracks to help sell its own coal. “It is for the Mongolian Government to settle things with Russia and China so that our coal can be sold to countries beyond the seas at a proper price,” he said.
Battsengel said his company exported 20,000 tons of coal to Japan through Russia at USD280 per ton, but USD170 of this went to meet transportation costs. In comparison, coal sold to China fetched USD120 a ton, but transport costs were only USD 10 a ton. He appreciated the extent and complexity of the problem for the Government, but warned that only a quick solution would help mining contribute more to the national economy.