Mongolian coking coal exports to China are expected to reach a record level in 2024, thanks to improved transport links and its price competitiveness compared to other suppliers in 2023, local media reported.

China, the world's largest steel producer and coal importer, could see a boost in coal supply from Mongolia as it seeks alternative sources following a diplomatic dispute with Australia in 2020.

Mongolia plans to export 100 million tonnes of coal to China this year, supported by the development of a cross-border railway and expanded road infrastructure.

The relatively lower costs of Mongolian coal compared to Australian coal has prompted expectations of a future policy favoring increased coal imports from Mongolia.

China's imports of Mongolian coking coal stood at 54 million tonnes last year, doubling the 2022 level of 25.6 million tonnes, Chinese customs data showed.

The construction work of connecting the Gashuunsukhait-Ganqimaodu border port railway will start in April this year, which could bolster Mongolia's cargo exports via railways to rise from 8.2 million tonnes in 2023 to 80 million tonnes by 2030, the People's Daily reported.

(Writing by Riley Liang  Editing by Rebecca Liu)
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