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What is the cost of Mongolian coal to reach the ocean?
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The Mongolian Mining Journal /2018.007/E.Odjargal

The ceremony was held on June 8 in the "Mongolia-Russia Initiative 2018" event held in Ulaanbaatar. The agreement was signed between the two countries on the transit railway between the two governments. The agreement was signed by Minister of Road and Transportation of Mongolia J.Bat-Erdene, Minister of Transport of the Russian Federation E.I. Dieter has signed. As a result of this agreement, the most important issue is the opportunity for Mongolia to receive transit transportation. The favorable condition is to find out how to reduce the cost of exporting the Mongolian coal by the Far East Bark to a third country, as well as to compete with China's transit transportation costs.

For Mongolia, which is landlocked and geographically neighboring Russia and China, exports can only be delivered to a third market through neighboring countries. If the Russian side realizes a certain discount, it will be possible to export the mineral products, including exports to third countries, not only China but also Japan, South Korea and India.

Russia: Comparison of Yakunin's proposals today is

Mongolia and Russia and China are the united countries of the Cooperation Mechanics of Railways (JIC). Countries in the NSC have adopted the "Transmission tariff" (CPT) amendment adopted by the agency in 1991 on transit transportation.

The main conditions of negotiations on the Russian side are the 66.4% of Mongolia's transit transport, with a 52% discount on coal transportation and freight transportation. This discounted tariff has been negotiated for 25 years. The main significance of the agreement is that B. Arrur, Head of the Department of Roads and Transportation Policy Development, Ministry of Roads Transportation and Transportation, said: "The tariff levels of transit freight will be negotiated with competitively competitive tariff rates in other areas. In other words, the transit tariffs from Russia to the transit tariffs for transporting freight from Mongolia to China mean that the tariffs are also being reduced.

The agreement emphasized by officials that the nine-year talks had come to an agreement with the Russian side, which resulted in the completion of the final written declaration of the completion of the domestic work by diplomatic channels.


In remembrance, in 2010, the President of RJTC Vijijiyin, addressed by the Minister of Road, Transport and Transportation of Mongolia, Mr. Kh.Battulga, said: "Russian Railways and Mongolian railway companies are the" Consignment tariff "participants and Russia rail link The additional coefficients are used in conjunction with transit trucks, wagons, and other parameters. The rules governing the use of such additions are reflected in the 2010 Rail Cargo Policy Transport Act between 2010 States Parties to the Commonwealth of Independent States. According to a resolution signed between the Russian Federation and the Government of Mongolia on transit transit transportation from Russia to Mongolia on 19 October 1992 and transit transportation between Russia and Mongolia, transit RZDI is transit from Mongolia to Russia via the Russian railway and Far East stops a favorable pricing policy. The RJD and the Ulaanbaatar Railways, which were held March 10-11, 2010, discussed the possibility of transit transportation from Mongolia to Russia's Far East ports. In this regard, you know that the coal transportation reduction coefficient to reach third countries via the Far Eastern port through Naushki and Solovyevsky customs from Mongolia will be 0.48 in 2010. Therefore, the freight rate of 68 tonne trucks (half wagon) to Solovyevsk-Vanino and Vladivostok stations is 26.3 Swiss franc. It is 65% lower than the tariff rates. (0.9 incremental coefficient and 0.8 coefficients to be used for loading of second class loads from over 40 tonnes) ".

The parties agreed on the draft agreement on the implementation of the reduction coefficient, signed by the Minister of Road and Transportation of the two countries (Deputy Minister of Transport of the Russian Federation N.Nedosekov, Deputy Minister of Transport, Construction and Urban Planning of Mongolia A.Gansukh) signed there are. The discounted tariffs will continue to be negotiated on the use of Mongolia's mineral exports to reach third countries by Russian ports through Naushki and Solovyevsk customs ports of 25 years or longer.

There are real estimates of the Tavan Tolgoi coal bidding process at the Tavan Tolgoi deposit, which was carried out in Russia in 2011. The Energy Resources estimates the export of coal by the Far East. From the Tavan Tolgoi to Choir, the road was transported to the Nakhodka port through the railway. At the same time only 1 ton of coal transportation and logistics costs $ 171. But this is the price of Russian railway freight rates without any discount.



"To bring Choir up to $ 38 a ton of transport by truck. The next $ 35 will be shipping it to Russia for $ 31. In addition, the car rental will increase. Rent a wag from Russia is 100 USD per day and the wagons come and go for 14 days. Russians are going to get a one-way wagon on a void. So a 7 day train fee is USD 700. Make it 60 tones loading. Here is the price of 170 USD. "The President of the Railway Engineers Association L.Purevbaatar explained in an interview with MMJ magazine No. 053 (053). He described the 0.48 coefficient of the Russian side against the cost of the Tianjin port of China, as shown in the table below.



According to information from official sources today, about US $ 33 per tonne of coal is transported from Russia to Russia, and at $ 23 per tonne ship to the port at Far East. If the railway is to be constructed, railway experts estimate that the cost of transporting coal from the Tavan Tolgoi to the northern border of Naushki will be reduced from $ 38 to $ 26. It does not take into account Russia's freight rollout and customs duties, but it costs only about $ 59 a tonne and increases $ 23 to ship to $ 82.



The Russian "Argus" agency presented an overview on the possibility of exporting Tavan Tolgoi coal to the Vostochnaya port of Far East on the statement of the "East Economic Forum" of the President of Mongolia, Vladivostok. It compares Kazakhstan's coal equivalent to the location of Mongolia with exports to Russia via the Far East port. As of Nov. 10, the Shrewsol mine of Kazakhstan will cost all shipping costs and exports to the port of Vostochny by $ 81.13 per tonne to $ 8. The country is a member of the Eurasian Economic Union, which transports 1 ton of coal to Russian territory at a discount of 20 US dollars per transit transportation. In terms of Mongolian coal, the Russian railway will be transported by US $ 33 for the transit railway line, but it will be exported to the port of Far East by 86-97 USD. This is the only transport cost to export 1 ton coal from the Tavan Tolgoi deposit to the Far East.


At present, negotiations have been renewed each year by the Russian side to give exemptions to Mongolia's freight through its territory. Depending on the railway load and market conditions, each annual allowance is exempt from Mongolian tariffs. 66.4% of coal transportation in Mongolian-Russian intergovernmental agreement signed in June and tariffs for 52% discount on containers are not yet valid.

TT ord- Choir Naushki Naushki-Vostochnaya total cost
Choir terminus station crossing
$ 86 $ 33 $ 40 $ 13

Russians watched carefully rail projects implemented in Mongolia, new factors perfected the process negotiations on tariff concessions There is a lull. As a shareholder of the Ulaanbaatar Railway, interest in the new railway is likely to be involved in the new railway projects, as well as the proposed railway route, which may affect the decision of the Government of Mongolia. The Russians who want to reach the Chinese market with all the enormous coal reserves, want to open another gateway to the Chinese market through the Mongolian territory. It is the direction of the Kuragino-Kyzyl-Tsagaan Tolgoi-Arctuuri-Ovoot-Erdenet-Salkhit-Zamyn-Uud-Ert-Ulaul-Erchim-Pyongyang-Tianjin route north-west of the railway corridor that includes the "Economic Corridors" . The 410 km railroad project "Kouragino-Kyzyl", which is part of the Russian side, has been frozen for almost 10 years, and is now being implemented with support from the President of Russia.

The Government of Mongolia plans to implement Tavan Tolgoi-Gashuun Sukhait and Tavantolgoi-Zuunbayan railway projects in addition to road projects to intensify Tavan Tolgoi project. In addition, four border points have been developed to extend the border crossings to the north and two to the south to increase exports of mining products.


China: To the port of Tianjin only transport costs $ 64

The Russian Prime Minister's decree on signing the agreement between the Mongolian and Russian governments on the signing of the Intergovernmental Agreement between Mongolia and Russia, in November 2017, by J.Bat-Erdene, Minister of Roads and Transportation said "to Vladivostok port 1 tonnes of coal to $ 64 and to China's Tianjin to $ 65. " However, the estimation was based on the route and did not reveal the comparison.

During the visit of Chinese President Xi Jinping in 2014, the Ministry of Roads and Transportation of the two countries signed 4 documents. In the meantime, the Intergovernmental Agreement on Mongolia "Entered into and out of the Chinese territory and transit transportation". In the framework of the agreement, Mongolia announced the opening of ports to be used in Mongolia, with the opening of seven ports in Dandong, Dalien, Jinzhou, Ingkou, Qingdao, Huanghua, Tianjin, and North Korea. The terms, quantities, tariff discounts, terms and conditions of payment, and their terms of service have been negotiated very well in Mongolia by the Protocol " . At that time, Chinese side agreed to negotiate at least 40% discount on railway transit tariffs. However, the above agreement has not yet taken place.

Transportation of domestic domestic rail to today is Mongolia's 34 tons of coal. According to railway experts estimates that the transit of China will only cost US $ 64.22 for transportation costs of Tavantolgoi coal.

Last September, the coalition of the Inner Mongolia coal mining company "Mengchan Wanghua Energy" transported Tavantolgoi coal to September to the east coast of Tenganan.


Anchorage is located alongside Dandong, Dalien, Jinjin, Ingkou, Qingdao, Huanghua, and Tianjin. In this sense, this calculation was made to transmit coal from Tavantolgoi deposit to Gantsmod or Chinese border and to show the transportation route to the Tianjin port.

Currently, Mongolia is connected to China by the only Zamyn-Uud port. From March 2017 to Dornogobi province, the first coal-to-rail test was carried through the Zamyn-Uud via the railway to Tianjin port of China. This railway transport took 4-5 days to the east coast of China. Zamyn-Uud is an international port and coal is unloaded and re-loading. Thus, the Minister of Road and Transportation Minister D.Ganbat emphasized the advantages and cost savings.