Mongolian Mining Corporation: the largest washed-coal producer of Mongolia

In July 2024, Mongolian Mining Corporation (MMC)'s coal processing plant in South Gobi, the country's first of its kind, reached a significant in-feed milestone by processing 100 million tons of coal.

Over the past 16 years since the start of its operations, MMC has emerged as one of the key players in Mongolia's economy, establishing standards for its integrated operations and sustainable mining practices.

Mongolia is the largest supplier of coking coal to China and its coal industry has been a backbone and a major contributor to the country's economic growth and development.

MMC's coal handling and preparation plant with an annual processing capacity of 15 million tons

In 2023, Mongolia's annual coal exports more than doubled from its 2022 volume and reached a record-high of 69.6 million tons. By surpassing over 45 million tons in the first 7 months of 2024, the amount is expected to reach another high by the end of the year, largely driven by a steadfast coal supply and a growing demand from the Chinese market.

Being the largest washed coal producer and exporter of Mongolia, MMC accounted for approximately 10-13 percent of the country's total coal exports to China for the past years.

Established in 2005 with entirely domestic investment, MMC has grown to become the most advanced coal mining company in Mongolia, with its operations being fully integrated from mining, processing to transporting and exports. The company owns and operates two open-pit coking coal mines, Ukhaa Khudag and Baruun Naran, both situated in Umnugobi aimag of Mongolia, with a close proximity to the Mongolian - Chinese border (~240 km).

In 2010, MMC became the first Mongolian company to be listed on the main board of the Hong Kong Stock Exchange (stock code: 975), marking a significant breakthrough at the international capital markets. The company’s core mission is to undertake safe and profitable operations while contributing to the development of Mongolia, through a combination of advanced technology and human endeavor. MMC's sustainable approach has significantly enhanced the value of Mongolian coking coal and help boosted its competitiveness in the international market.

With a capacity to process up to 15 million tons of coal per annum, MMC has secured its position as a primary supplier of washed coking coal to the main market of China and maintained a long-term relationship with over 70 Chinese clients and end-users. They include some of the top-tier mining and industrial enterprises of China such as China Energy Coal Coking Co.,Ltd., Baotou Iron & Steel Group Co.,Ltd., Gansu Jiu Steel Group, and Jiayou International Logistics Co.,Ltd.

MMC's coal handling and preparation plant with an annual processing capacity of 15 million tons

In the first half of 2023, the government of Mongolia introduced the open online auctioning platform for the coal exports via Mongolian Stock Exchange (MSE), and MMC became one of the first companies to sell its products through the auctions. As of the first 8 months of 2024, the company sold almost 4 million tons of coal using the MSE open platform, leading to a further increase in its customer base.

As the industry rapidly moving towards more responsible mining and accountability, MMC focuses on the sustainable use of resources at every stage of its operations. It has adopted efficient water management solutions to lessen the environmental impact, such as water recycling at the coal handling and preparation plant and dry-cooling system for its power plant, both specifically designed to suit the dry Gobi conditions. MMC's commitment to sustainable development demonstrates its focus on long-term growth, set to positively impact both the company and the broader Mongolian economy.

Looking ahead to 2025, the company is intending to keep its status as one the largest washed coal suppliers to China, whilst strengthening its strong-ties with the long-term clients and customers.

 "10 years ago, China and Mongolia set a goal of increasing the bilateral trade volume to $10 billion by 2020. Not only this goal was successfully achieved, but the bilateral trade reached $17.6 billion by 2021, with a mutual goal to further advance it to $20 billion in the foreseeable future. With the coal industry and coal exports being a vital part of it, we are committed to strengthening the relationship with our partners in China and as such, continue to contribute to this ever-growing mutually beneficial economic cooperation between the two friendly neighbors, based on mutual trust and respect of people's core interests," said Battsengel Gotov, MMC's executive director and chief executive officer.