Construction work is tentatively due to start on a dual-gauge rail line between China and the Republic of Mongolia. Reports indicate that the rail line will increase coking coal transport by up to 30%. Current estimates say the project will begin in April, with completion scheduled for 2028.
Dual-Gauge Rail System to Solve Major Problems
Mid-February reports noted that the 240-kilometer, dual-gauge line will run from mines at Tavan Tolgoi in Mongolia to the town of Gashuun Sukhait on the border with China. It is important to note that rail gauges, or the width between rails, differ between the two countries. While Mongolia’s network uses Russian gauge (1520mm), China utilizes the European standard of 1,435mm.
Because of this difference, workers need to transfer coal shipments from Mongolian trains to Chinese trains at the border. However, a dual-gauge line would negate that need and allow a seamless connection over the border.
A Big Step Forward for Mongolian-Chinese Trade
Reports stated that the Mongolian government announced the agreement after talks between Chinese Premier Li Qiang and Mongolian Prime Minister Luvsannamsrai Oyun-Erdene in Harbin, Heilongjiang province.
Mongolia’s Tavan Tolgoi is one of the world’s largest coal deposits, with an estimated total resource of 6.4 billion metric tons. Of that, up to 40% is coking-quality coal. Mongolian Mining Journal (MMJ) stated that the country exported over 34.5 million metric tons of coking coal to China in the first seven months of 2024, a significant increase from the 26.6 million metric tons shipped over the same period in 2023.
Mongolia Now China’s Leading Coking Coal Supplier
In addition to representing a 30% increase on the year, the 2024 volume makes Mongolia the primary supplier of coking coal to China, at 51.1% of total imports. Meanwhile, China resumed coking coal imports from Australia in early 2023, following its initial ban in late 2020. However, MMJ noted that  “physical volume remains several times lower than pre-ban levels.”
Steelmakers use coking coal to produce coke, which they then charge into blast furnaces as part of pig iron production to reduce iron ore into molten iron. The feedstock also acts as a carbon-reducing agent during pig iron production.
On February 25, the World Steel Association reported that Chinese steelmakers poured an estimated 81.9 million metric tons of crude steel in January, down 5.6% year on year from 86.8 million metric tons. However, the latest volume is nonetheless up 7.76% from the 76 million metric tons poured in December.
By Christopher Rivituso

Published Date:2025-04-14