Mongolia's coal exports are facing mounting challenges as border congestion and falling global coal prices disrupt trade. At a recent government meeting, a government working group tasked with boosting mining exports and foreign exchange reserves highlighted bottlenecks at key border crossings and outlined urgent policy measures, Mongolian media outlet IKON reported.
This followed a visit to the affected ports by the group, which directed officials to resolve technical network failures slowing transport at Shivee Khuren and explore ways to reduce container handling, loading, and customs costs at border crossings.
The working group was headed by the Minister of Industry and Mineral Resources Tuvaan Tsevegdorj, Minister of Finance Javkhlan Bold, and Minister of Road and Transport Delgersaikhan Borkhuu.
The ports of Gashuunsukhait, Khanghi, and Shivee Khuren, critical gateways for Mongolia's coal exports, are experiencing severe stockpiling pressure. The storage capacity of China's Ganqimaodu port connected with Gashuunsukhait is nearly maxed out at 4.5 million tonnes, preventing further shipments.
As of March 23, coal inventories at Ganqimaodu stood at 4.39 million tonnes, Sxcoal's tracking data showed.
Similarly, coal is accumulating at Khangi and Mandula border crossings, preventing withdrawals and making additional exchange trading impossible. These logistical challenges have been exacerbated by a sharp decline in coal prices, which has led Chinese buyers to suffer heavy losses, reducing their willingness to purchase additional coal through the Mongolian Stock Exchange.
Mongolian officials also acknowledged the need for domestic improvements. The Finance Minister noted that efforts are underway to cut transportation costs, particularly at Khangi port, where railway expenses under government control have already been reduced by 50%.
By expanding its capacity, Khangi port would be an important gateway to increase foreign trade turnover. Also, it will share the load of Zamiin Uud and Gashuunsukhait ports and support the planned mining project.
Additionally, the Ministry of Road and Transport has slashed railway base freight fees along key routes, aiming to improve competitiveness.
Shivee Khuren port, which operates under a market-driven model with private sector participation, is a little different from the other two ports. Eight domestic and foreign-invested companies operating in the Nariinsukhait deposits exported 24 million tonnes of coal via the port last year, with plans to increase exports to 25-26 million tonnes in 2025.
The Shivee Khuren-Ceke cross-border railway and station – funded through private investment – is nearing completion. Once operational, the port's annual coal export capacity could reach 50 million tonnes, according to the port's private operators.
Meanwhile, the majority of the members present at a meeting supported the discussion and adoption of the draft law on the ratification of the agreement between Mongolia and China regarding the Gashuunsukhait-Ganqimaodu cross-border railway, coal trade, and cooperation in boosting Tavan Tolgoi coal mine capacity, according to the State Great Khural.
Daily truck traffic ranges from 300 to 400 vehicles at Khangi port, and 250-300 trucks cross Gashuunsukhait each day. Shiveekhuren handles over 600 trucks per day, maintaining stable exports, with further growth expected as new facilities come online.
Beyond coal exports, the government's working group inspected a coalbed methane project in Umnugobi aimag, where three exploration initiatives are underway. These projects, led by Telmen Resource, could provide a cleaner alternative energy and heat source while reducing air pollution.

Published Date:2025-03-28