China's Foreign Minister Wang Yi and his Mongolian counterpart B. Battsetseg confirmed the connection of the Gashuunsuhait-Ganqimaodu port by rail and agreed to sign stable long-term coal contract during their talks on August 8.
The two sides have agreed to strengthen the cooperation at the largest inland border port and facilitate the connection of the most-watched railways. Some other progresss were also made on infrastructure issues, including the capacity of the port, according to the Ulaanbaatar News.
Mongolia and China are also expected to promote the signing of stable long-term coal supply agreement in the future, the local media reported.
This would further boost coal flows through the major coal artery. Currently the coal exported through the border crossing was delivered via heavy-hual trucks.
As of August 8, China's Ganqimaodu border port had cleared customs of totaling 51,952 trucks of Mongolian coal, surging nearly 61% compared with the same period in the preceding year. An average of more than 500 trucks of coal have been cleared every opetating day so far in August, Sxcoal's tracking data showed.
Mongolia is expected to achieve its 2022 coal export plan, which has been revised to 18 million tonnes according to the budget amendment.
The counry was looking to export 36.7 million tonnes of coal to China in 2022, but the outbreaks of the COVID-19 had hindered the delivery of the target. Mongolia exported about 37 million tonnes of coal and produced 50 million tonnes in 2019, data showed.
As of August 8, 11.5 million tonnes of coal have been exported, which is 64% of the plan and marks an increase of 10.4% compared to the same period last year, Ulaanbaatar News reported, citing O. Batnairamdal, Vice Minister of Mining and Heavy Industry of Mongolia.
Besides, the two sides also made a consensus on increasing the number of train interchanges on the Zammin Uud-Erenhot route. The Chinese side will discuss with relevant domestic units the request from Mongolia regarding the connection of the Khangi-Mandula border crossing.
(Writing by Emma Yang Editing by Tammy Yang)
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