Research on the Competitiveness of Mongolian Coal Industry

This research is aimed to determine factors impacting competitiveness of Mongolian coal sector and develop possible ways to increase competitiveness of Mongolian coal on International market. Based on literature review we choose following methods of analysis: 1) Revealed comparative advantage for determining level of competitiveness of Mongolian coal sector; 2) panel regression for determining factors impacting competitiveness of coal sector; 3) documental analysis for developing possible opportunities of increasing competitiveness of Mongolian coal sector. Revealed comparative advantage shown that Mongolia is failing to benefit from International coal market. Mongolia ranked only at 22th place, despite having huge amounts of coal reserves. Rca analysis also shown that countries with lower economic development usually tend to have lower Rca values compared with high developed ones. Regression analysis shown that GDP supports to coal sector by transition of national income to profitable sectors. countries with sea gateway can benefit in competition by lower transportation costs. Logistics and infrastructure support countries to achieve benefit from enhanced transportation and logistics network. We used Porter's Diamond Model to interpret and analyze each of 6 factors, that may have impact to Mongolian coal sector competitiveness. these include: firm strategy, factor conditions, demand conditions, related and supporting industries, government, chance. From these factors, we found that infrastructure has highest impact on Mongolian coal sector. Based on infrastructure, we developed possible ways of cost efficient transportation and strategical planning of coal reserves

Study on Competitiveness of Mongolian Coking Coal

Mongolia is one of the richest countries in coal reserves. It ranks seventh in the world In terms of its coal reserves and first in terms of per capita reserves. Coal reserves are relatively evenly distributed in Mongolia. 2% of the total coal reserves are anthracite, 31% are hard coal and 67% are lignite. The mining sector plays an important role in the economy of Mongolia. As of 2019, the mining sector produced 25% of Mongolia's gross domestic product, 74% of total industrial products, and about 90% of export products. In Mongolia, about 90% of coals mined for the energy purpose is used as the fuel for thermal power plants. Mongolia exports most of its coking coal to China. Steel production of China is growing every year and the demand for coking coal is increasing, which is having a positive effect on the Mongolian economy. China is the closest market to Mongolia. This article studies the world's coal reserves, market outlook, the current situation and future prospects of Mongolia's coal sector, coking coal production of China, demand and supply, coal sector strategy of Mongolia, and opportunities to improve the competitiveness of the coking coal market