Leopard Capital – Emerging Frontiers Blog / The Australian: Mongolia on track to supply Asia with coal

Mongolia is looming as a serious competitor for Australian mineral exports to northern Asia. Already the landlocked north Asian state supplies 44 per cent of the coking coal imported by China, compared with Australia’s 22 per cent market share. But there is also the looming threat that a new railway could mean Mongolian coal can be supplied more cheaply and quickly to our large markets in Japan and South Korea. It takes a bulk carrier up to 17 days to haul coal from Newcastle to a South Korean port. Once a proposed new Mongolian rail line is built it will take just three days to transport coal to ports in Siberia and just a few days sailing across the Sea of Japan. Everybody, it seems, wants a piece of the Mongolian resources action. The latest mover is Singapore state investment agency Temasek, which has taken a 5.5 per cent stake in Canada’s Ivanhoe Mines, 66 per cent owner of the huge Oyu Tolgoi copper-gold mine. Just weeks earlier, the Steel Authority of India inked a deal to gain access to coking coal and iron ore projects in Mongolia. To read the full article, click hereMongolia on track to supply Asia with coal

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