Source: Reuters                          Date: 24 June, 2011

Mongolia's coal exports are expected to keep posting exponential gains and reach some 50 million ton by 2015, though infrastructure constraints are likely to obstruct the growth of the booming mining sector. Total coal exports are expected to jump 50 percent from a year ago to 25 million tons this year and rise further to between 30-35 million ton in 2012, Mr. A. Erdenepurev, General Director of the Fuel Policy Department at the Ministry of Mineral Resources and Energy, said on the sidelines of Coaltrans Mongolia, an industry conference in Ulaanbaatar.

"Looking at our production growth over the past few years, these short-term forecasts can be quite conservative," he said. A severe lack of roads, rail lines, electricity, water and skilled workers in the nation of 2.7 million people poses formidable challenges to Mongolia's mining boom. "There are 5,000 trucks per day on the road linking the southern Gobi region to the Chinese border right now and that number is going to grow and cause congestion," Mr. Erdenepurev said. "There is a serious need for new infrastructure, but it also demands huge investments."