The Mongolian Mining Journal /2019.001/
E.Odjargal / The Mongolian Mining Journal /
In 2019, Mongolia calculated the budget for export of 42 million tonnes of coal. Six million tons more than the previous year. It does not have a specific plan for government policy to conform to reality. For the last three consecutive years, our country's coal exports have renewed their historical highs. However, it is doubtful that coal exports will exceed the previous year's coal exports in 2019. If there is no risk, the state budget will be disrupted. The private sector's efforts to bear good and bad sectors in the back of the industry could reach 42 million tons of coal exports. Perhaps, Erdenes Tavan Tolgoi will increase its Gatsmod port's imports of 10 million tonnes of coal in Bayannuur, China. Or maybe the government hopes that one of Tavan Tolgoi's five roads will be built and exports will rise again. This reduces Mongolia's coal price and competitiveness in the coal sector with a unified state of mind, unprepared, competitively-traded, and uniquely buyer of China's current market policy and the rival Russian coal strategy.
The present scenario of the coal-fired railway project, the coalition of the Tavantolgoi and the politicians who are not talking about the elections, is the only way to limit the value of life-threatening roads and internally produced value-added industries. Because of the fact that the government did not have a strong coal policy, the modern government has "played" this sector, which has not changed in the last ten years.
Mongolia will export nine coal-fired coal mines to 100 million tons annually, and build nine power plants, develop coal and produce petroleum products, build a complex of coal-chemical complexes at Tavantolgoi deposit, build a coal-fired railway to build the Gashuun Sukhait railway from this deposit. It is time to describe the "Coal" program.
One of the sub-programs under which the "Government's Policy Sector Policy" was adopted and implemented in 2014 was the "Coal" program. The Ministry of Mining, together with professional associations and Japan's JICA, developed a master plan for the coal industry and established a working group on the program.
Today, the mining operation belongs to the Ministry of Industry, but the product belongs to the Ministry of Energy, which concentrates, dilutes and manufactures final products, which are relevant to the Ministry of Industry and Agriculture. Regarding this situation, the entire coal industry was assigned to a separate agency and was assigned to the Ministry of Mining to become the Coal program. If the government adopted the program at the time, the four-year first stage would have ended in the last year and the next four years would begin this year. However, the coal price has fallen, and the downturn in the international market has been delayed by 2015, as it is not feasible to implement the "Coal" program. Subsequent subsidies for the coal industry subdivided into new parliaments and governments. The "Coal" program, which has a bigger purpose to increase the competitiveness of Mongolian coal and develop a sector-wide complex policy, is turning to "sacks" of coal to supply ger district households.
D.Damba, Senior Officer , Ministry of Industry and Agriculture, "Coal Policy is under the Ministry of Mining and Geology and Mining Policy Division of Ministry of Food, Agriculture and Light Industry. Preliminary report of the coal sector development report from Japan's "JICA" was submitted to the Ministry of Nature, Environment and Tourism two years ago. Since then, Tavantolgoi deposit is being used as a whole, and Erdenes Tavan Tolgoi has been operating in the Tavantolgoi deposit of East and West Tsankhi. Based on the high quality coking coal of Tavantolgoi deposit, it is exporting value-added products over the next 5-6 years.For instance, at Ukhaa Khudag there is 15 million tons of coal and a concentrator factory. Energy Resources uses about 1% of the capacity of the plant. With the remaining 10 million tons of capacity, we are preparing a pre-feasibility study with a capacity of 20-30 million tonnes of coal washing a year depending on the Tsankhi deposit. Government resolution 73 has been approved to intensify Tavan Tolgoi deposit into economic circulation. Within this framework, the five road construction projects will be implemented. Therefore, the Ministry of Industry believes that the program should be in the coal sector,
B.Altsuuk, senior specialist in the Coal Industry Coal Industry and Technology Division , approved the "Policy on the Government's Mineral Sector", which states that no independent program on each resource is needed. It was talked about how to incorporate the "Coal" program into a different form. In 2016, the new coalition, Government Action Program and Action Program have not been discussed again in the "Coal" program. For me, this program was initiated and I tried to implement it through two or three governments, but I was not "on" to prove it. So no longer active.
There is currently no Coal Expert in Ministry of Industry and Agriculture. The Ministry of Public Policy Implementation Coordination took place in the ministry.Structural reforms of the Ministry of the Republic of Korea were disbanded by the Policy Implementation Coordination Department
The only market for Mongolia's coal is China and its main competitor is Russia. Mongolians should be aware of the ambitious goals of the state's policy reforms in the coal sector of the two neighboring countries.
China
Specific state policies are based on the Chinese market.In the case of a communist or centrally planned economy, the quota for exports and imports is set. In the "13th Five-Year Plan", the "green" development goals have been introduced to implement the coal sector reforms.
For the first time in the framework of "Green" economic development, it is aimed to combat air pollution by 2020, to cut 150 million tonnes of domestic steel production, reduce coal production by 800 million tonnes, to open new coal mines, to close 4300 mining operations, to count coal companies it has a clear plan to reduce it.Steel production in the last three years has dropped 145 million tons and coal production reached 590 million tons, with over 2000 coal mines closing. We are trying to create small-scale mega corporations, as well as combine coal miners, energy and steel industry companies with large numbers of small mines. Including Baosteel and Wuhan Steel, China's leading energy companies, China Guodian and Shenhua.
With the implementation of the three-year program, the "Blue Sky" approved by China's State Council last year, a large scale of 80 coal-to-urban consumption and large-scale heavy-duty resettlement in the coastal region. Some industries are approaching the commodity market, and that migration is also increasing to the Inner Autonomous Region border with Mongolia. Thus, the reform of the state policy in the coal sector indicates that China's old-fashioned and technologically mature plants are progressing and the new era of quality production is progressing. As a result, China's heavy industrial market is approaching Mongolia and there is an increased advantage of our country's high-quality coking coal purchase. This opportunity is to strengthen Mongolia's current position in the market, and to increase the coal export, as a major player in the demand for coal.
Russia
Russia is Russia's largest consumer of coal after China's coal exports to China. The country has adopted the "2030 Coal Sector Development Program" in 2014.The government estimates that the state will spend 5 trillion rubles. Investment will be dedicated to discovering new coal deposits in the Yakut and Zabaikalsky territories, and coal reserves will increase to 530 million tons annually and 105 million tons of coking coal reserves. 21 of the 48 investment projects included in the program are in Eastern Siberia and the Far East.By implementing projects, by 2030, coal production in the regions will reach 150 million tons per year. The main coal mines include the Elga coal complex (30 million tons), Inagleskii (12 million tons) in Yakutia, Erkovetskiy (29 million tons), Georgia-Oogodjinsky (30 million tons), Ulu-Hemsk coal basin in Tuva (20-25 million tons).
With the development of railway infrastructure in line with the implementation of new projects, the first stage will be to transport 195 million tonnes of coal by 2024 to the Far East ports. With the completion of the "Coal Sector Development Program" in 2030 Russia's total coal exports will reach 225-270 million tons.
In August of last year President Vladimir Putin defined Russia's coal strategy and new goals as it worked in the Kemerovo region of the main coal region. He said that he would increase Russia's coal exports to Asian countries by 50%. This means that coal production will reach 560 million in 2025 and 590 million tons in 2030.This year, 15 new mines with capacity of 225 million tonnes of coal will be operational in Kuzbass, Hakacki, Yakutia, Tuva and Khabarovsk region.
In addition, five processing plants with capacity to process about 60 million tonnes of coal per year are in operation, while a total of 25 million tonnes of refineries are under construction. Russia supplies 9.3% of the coal market in the Asia-Pacific region and doubles by 2025 by the Ministry of Energy. So, in this direction, it will increase the export of coal to current 200 million tonnes from 100 million tons over the next six years. Russians are aware of the growing trend in India's and India's market of coal demand, and in 2025-2030 the coal imports in the country are expected to provide at least 100 million tonnes of coal. To do so, the Russian government will invest 1.5 trillion rubles in six years to develop coal mining and road transport. In addition, President Putin said the government would support private sector investment and investment in the coal sector's ability to compete. The first decision to support the private sector started to offer long-term discount tariffs for rail transport until 2025.
Considering the trends in the coal sector in both countries, it is important to maintain the current volume of exports rather than to increase exports, to increase the current position of the main market and to increase its competitiveness to the external market for exports, and first to develop export infrastructure .
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