Coal Transportation Arranged by Mines and Coal ProducersEconomy
Ulaanbaatar, February 28, 2023 /MONTSAME/. Road transportation plays a vital role in the electronic trading of coal, as transportation costs account massive part of the coal trade. According to the Plenipotentiary Representative of Government for “Erdenes Tavantolgoi” Company J. Ganbat, tendering the transportation companies aims to make coal transportation more transparent and reduce transportation costs.
Temporary resolutions for mining companies to participate in electronic trading with their own delivery options are now being changed as well in order to make the operation transparent. Pertaining to the matter, the Minister of Mining and Heavy Industry, J. Ganbaatar said, “Coal transportation will be arranged by the mines, producers, manufacturers, and processing companies themselves. The related ministry will not participate from the Government side. When the government starts participating, it will return to the old manner or illegal way of coal trading. The purpose of digital trading is to eliminate all illegal attempts and conduct and promote open and fair trade. Earlier, politicians and ministries used to interfere in the operation, but now their intervention is limited to policy making” during the meeting and discussion on “Electronic Trading of Export Coal” held on February 27 at “Tuushin” hotel.
Representatives of about 200 Chinese coal-purchasing companies attended this meeting, jointly organized by the Ministry of Mining and Heavy Industry and the Financial Regulatory Commission. During the meeting, the organizers presented and explained the Law on Mining Exchange, which will come into force from July 1 of this year, and the Regulation on electronic trading of export coal. In addition, the participants also discussed how electronic trading takes place after law enforcement and how to make long-term and short-term contracts.