Coal the Most Important Mineral Resource of Mongolia

Mongolia is a nation with rich resources, including –copper, gold, iron ore, molybdenum, oil, phosphates, tin, uranium, tungsten- and coal. Its ample mineral wealth has earned it the nickname of “Saudi Arabia of Central Asia.”

Mining companies were first attracted to the area to extract copper, molybdenum and gold.

Now, the focus has shifted to coal.
Mongolia is estimated to have potential coal reserves of some 150 billion metric tons. 22.3 metric tons of coal reserves have been proven by specific researches.

Mongolia takes 12th place in the world in terms of coal reserves and 4th place in the coal per capita. Mongolia’s fuel balance is made up from 63 percent of coal, 32 percent of oil products and 5 percent of wooden and bio fuel each.

Mongolia obtains basic energy needs from coal. 93 percent of thermo – electricity is produced by coal and 7 percent is produced by liquid fuel.

Many issues have been brought up due to the increase in the quantity of coal production. The issues include the following: the protection of environment and nature, to resolve the eco balance problem urgently, to use coal as a fuel as well as to concentrate, gasify and fluidify the coal, to produce an oil product, to make by- products by coking the coal and to export the high-grade coking coal.

Nowadays over 400 diversified products are made from coal and the economic profits from the increase of coal consumption has reached 90 percent. But in Mongolia it is still very low, at 35 percent.

According to the research about the world energy industry and authorized source, coal can produce electricity for 800 years, oil for 35-50 years while natural gas can produce for 60-80 years.

It has a bullish tendency on renewable resource and coal, atomic energy consumption while oil and gas source are tend to decrease.

Today over 50 companies are mining coal in 36 coal deposits. Two of them processing parastatal while 3 of them operating with the local property involvement and rest of them are working under private ownership. By the year 2010, 25.2 million metric tons of coal will be mined.

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