New railway route to transport coal from Olon Ovoo station in Airag soum of Dornogobi aimag to port of Tianjin has put into operation on Mar 23. Port of Tianjin is the closest Chinese port to Mongolian southern border.
Staffs of Ulaanbaatar Railway Joint Venture completed the first phase of the terminal within 20 days which has a capacity to load coals to 100-150 trains per day. As a result, coal export to China expects to be risen by 200 thousand in a month and 2.5 million tons in a year. Further it enables opportunity to sell the coal to a third country at higher rates than Erenhot, as it expects to increase our foreign exchange income.
Terminal construction project was implemented in partnership with the private sector. The first phase of the terminal was built between Nov 6, 2016 to Feb 21, 2016 and total investment of the project was MNT 1.4 billion.
Construction of second phase of the terminal will be commenced in Apr, 2017, planning to be completed in June, 2017. At that time train weight, control area, road expansion and employee housing will be commissioned. Total of MNT 2.6 billion fund will be needed for the project. If terminal starts to operating at full capacity, 19,500 tons of coal will be transported per day.
Olon Ovoo station was established in 1974. As of today, the station is operating with a capacity to load 170 trains of coal per day. Mongolyn Alt Corporation, Friendship and Сhingisiin Alt companies mine coal from Alag Tolgoi deposit, located approximately 20 km from the station and supply it to the domestic and foreign markets.
Due to increase in coal price at Chinese market, coal transportation order by rail has risen. The station receives an order to transport 200-300 trains of coal per day.
Mongolyn Alt Corporation built the terminal when the company was mining from Eldev coal mine, located in Alag Tolgoi, Airag soum of Dornogobi aimag. However the terminal utilization was halted two years ago due to mine closure.
There are number of anthracite coal mines in Dornogobi aimag, each has 300-500 thousand tons of coal reserves. Surging coal prices in world market last year reflected our coal price selling to China and doubled it.
Therefore, the terminal created favorable transportation opportunity for these anthracite coal mines. During the time when the coal prices were low, mining and transportation costs were one of the biggest challenges to all mining companies.
Anthracite coal is a form of coal that is almost made entirely of carbon. Anthracite coal is much harder than other forms of coal. Anthracite burns much cleaner than other forms of coal due to its low pollutant content. In fact, anthracite may contain 91% to 98% pure carbon, leaving only 2% to 9% of other elements. Anthracite coal is difficult to ignite and burns with a blue, smokeless flame.
Cement and steel industries use anthracite coal, (mixed with coking coal) as raw materials.
North Korea was the biggest supplier of anthracite coal to Beijing. However Beijing decided not to buy coal from North Korea until the end of 2017. Such political decision caused increase in anthracite demand for cement and steel industries located in China's northeastern regions. North Korea was supplying 24 million tons of coal to China per year. However Australia, Russia, Indonesia are competing for that market.
Olon Ovoo station was expanded aiming to take the opportunity. However mining economist warns mining companies not to relax, considering this as a short-term.
Coal loaded from Olon Ovoo station will be transported in open container directly to the port of Tinajin through Erlian port.
Photo by: B.Byamba-Ochir
New railway route to transport coal from Olon Ovoo station in Airag soum of Dornogobi aimag to port of Tianjin has put into operation on Mar 23. Port of Tianjin is the closest Chinese port to Mongolian southern border.
Staffs of Ulaanbaatar Railway Joint Venture completed the first phase of the terminal within 20 days which has a capacity to load coals to 100-150 trains per day. As a result, coal export to China expects to be risen by 200 thousand in a month and 2.5 million tons in a year. Further it enables opportunity to sell the coal to a third country at higher rates than Erenhot, as it expects to increase our foreign exchange income.
Terminal construction project was implemented in partnership with the private sector. The first phase of the terminal was built between Nov 6, 2016 to Feb 21, 2016 and total investment of the project was MNT 1.4 billion.
Construction of second phase of the terminal will be commenced in Apr, 2017, planning to be completed in June, 2017. At that time train weight, control area, road expansion and employee housing will be commissioned. Total of MNT 2.6 billion fund will be needed for the project. If terminal starts to operating at full capacity, 19,500 tons of coal will be transported per day.
Olon Ovoo station was established in 1974. As of today, the station is operating with a capacity to load 170 trains of coal per day. Mongolyn Alt Corporation, Friendship and Сhingisiin Alt companies mine coal from Alag Tolgoi deposit, located approximately 20 km from the station and supply it to the domestic and foreign markets.
Due to increase in coal price at Chinese market, coal transportation order by rail has risen. The station receives an order to transport 200-300 trains of coal per day.
Mongolyn Alt Corporation built the terminal when the company was mining from Eldev coal mine, located in Alag Tolgoi, Airag soum of Dornogobi aimag. However the terminal utilization was halted two years ago due to mine closure.
There are number of anthracite coal mines in Dornogobi aimag, each has 300-500 thousand tons of coal reserves. Surging coal prices in world market last year reflected our coal price selling to China and doubled it.
Therefore, the terminal created favorable transportation opportunity for these anthracite coal mines. During the time when the coal prices were low, mining and transportation costs were one of the biggest challenges to all mining companies.
Anthracite coal is a form of coal that is almost made entirely of carbon. Anthracite coal is much harder than other forms of coal. Anthracite burns much cleaner than other forms of coal due to its low pollutant content. In fact, anthracite may contain 91% to 98% pure carbon, leaving only 2% to 9% of other elements. Anthracite coal is difficult to ignite and burns with a blue, smokeless flame.
Cement and steel industries use anthracite coal, (mixed with coking coal) as raw materials.
North Korea was the biggest supplier of anthracite coal to Beijing. However Beijing decided not to buy coal from North Korea until the end of 2017. Such political decision caused increase in anthracite demand for cement and steel industries located in China's northeastern regions. North Korea was supplying 24 million tons of coal to China per year. However Australia, Russia, Indonesia are competing for that market.
Olon Ovoo station was expanded aiming to take the opportunity. However mining economist warns mining companies not to relax, considering this as a short-term.
Coal loaded from Olon Ovoo station will be transported in open container directly to the port of Tinajin through Erlian port.
Photo by: B.Byamba-Ochir