In 2023, Mongolia experienced a substantial increase in its coal exports, reaching 66.70 million tonnes (mt), a notable rise of 110.5% compared to the previous year. According to Mongolia’s Customs data, a staggering 99.5% of these exports, amounting to 66.38 mt, were delivered to China.
Despite this significant volume increase, the growth in Mongolia’s coal export earnings did not keep pace. The total value of coal exports in 2023 rose by 34.9% year-on-year, amounting to $8.76 billion. However, this increase was overshadowed by a 35.9% decrease in the average coal export value, which fell to $131.39 per tonne.
December 2023 saw a slight dip in exports, dropping 8.4% from an all-time high of 7.65 mt in November to 70.10 mt. Despite this decline, December’s exports were still the second-highest level of the year and represented a 53.1% increase from December 2022.
Mongolia’s coal transportation to China via the Ganqimaodu checkpoint saw a record-breaking year, with a 102.4% increase in 2023 to 36.51 mt. This figure set a new record since the establishment of the checkpoint.
At the start of 2024, China reinstated coal import duties, imposing a 3% tariff on metallurgical coal from key origins, excluding Australia and Indonesia which remain duty-free. Despite this change, Mongolian coal deliveries to China have not been significantly impacted, thanks to a continuing wide arbitrage window that favors Mongolian coal.
Overall, Mongolia’s remarkable growth in coal exports in 2023, primarily to China, underscores its importance as a major player in the global coal market. However, the fluctuating export values and new tariffs pose challenges and opportunities for the landlocked nation in the evolving energy landscape.
