Seeking Alpha: Mongolian Mining Corp. – a High Profit Margin Play with Room to Grow

Mongolia is a small country rich in natural resources. When it comes to coal, the country is ranked fairly high among coal producers, with estimated coal deposits of up to 152 billion tonnes. Coking coal accounts for about 35 percent of the country’s coal deposits. Three years ago, China became a net coking coal importer and currently imports around 45 million metric tonnes of coking coal per year. The substantial increase in China’s steel production has stoked the Middle Kingdom’s demand for this vital raw material. As the chart below indicates, China’s steel production reached around 700 million tonnes last year. Even if China’s economy slows this year, its total steel production should remain near this level. That means China will remain a net importer of coking coal, especially since its domestic resources are insufficient to meet demand. To read the full article, click hereMongolian Mining Corp. – a High Profit Margin Play with Room to Grow

This entry was posted in Mongolia News. Bookmark the permalink.

Comments are closed.