Key facts
- Mongolia's coal output increased by 54.1% year-on-year to 46.45 million tons in Jan-May 2026.
- May coal production reached 12.28 million tons, a 52.6% annual increase.
- The country has set a target to produce 90 million tons of coal in 2026.
- China's demand is expected to rise due to stricter mine safety regulations.
- New mining operations will commence at the Borteeg coal deposit.
Coal production in Mongolia surged by 54.1% year-on-year to 46.45 million tons in the first five months of 2026, according to data from the country's statistic bureau. In May alone, Mongolia produced 12.28 million tons of coal, marking a 52.6% increase from the previous year.
The central Asian nation aims to produce approximately 90 million tons of coal in 2026, with the vast majority of its exports going to China. Market participants anticipate continued strong demand from China in the latter half of the year, driven by the country's crackdown on coal mine safety standards following a recent gas explosion. These safety measures could potentially reduce domestic thermal coal production and boost demand for seaborne coal.
To meet its annual production target, Mongolia needs to produce about 6.2 million tons per month for the remainder of the year, which is roughly half of its May output.
In a separate development, the Mongolian government announced in early June that mining projects could commence this year at the Borteeg coal deposit. Located in southern Mongolia near the primary export route to China, the deposit holds total reserves of 424 million tons, with 95% being coking coal and the rest thermal coal. The state-run coal mining firm Erdenes Tavan Tolgoi will oversee operations at this project.