Mongolia's State-Owned Coal Giant Pushes for Record Production
Erdenes Tavan Tolgoi JSC, Mongolia's state-owned coal company, plans to produce 35 million tonnes of coal in 2026, with 7 million tonnes to be processed at its newly commissioned beneficiation plant for higher-value export products. The company mined 30.2 million tonnes in 2025, generating revenue of US$1.7 billion and contributing MNT 1.6 trillion in taxes to the state budget.
Infrastructure and Processing
- Coal processing plant: Newly operational facility capable of washing up to 10 million tonnes annually at full capacity
- Conveyor system: Mongolia's longest conveyor at 12.6 km, linking the mine to the processing plant — approved for permanent operation in January 2026
- 2026 targets: 35 Mt production, 32.9 Mt sales, projected revenue of MNT 7.9 trillion
- Exchange trading: 55% of shipments traded through the mining products exchange as of January 2026
Borteeg Deposit Development
Mongolia's Parliament has tasked the government with developing the Borteeg deposit, an undeveloped section of the Tavan Tolgoi deposit group containing an estimated 424 million tonnes of coal (95% coking coal). An international Expression of Interest was launched in early 2026 to select investors for the deposit's development. ETT plans to extract 15 million tonnes annually from Borteeg once operational, generating US$1 billion in new revenue and contributing to the National Sovereign Wealth Fund.
Market Outlook
ETT CEO N. Tserensambuu expects coal demand in China — Mongolia's primary market taking over 90% of exports — to grow until 2030 before gradually declining. The company's focus on coking coal provides relative insulation from thermal coal demand pressures. Coal exports from Mongolia reached a record 83.7 million tonnes in 2024, with Tavan Tolgoi accounting for 26.1 million tonnes. The cross-border railway infrastructure, including the Gashuun Sukhait-Gantsmod line completed in 2022, has materially increased throughput and reduced trucking costs that historically inflated delivered prices.
