Source: Frontier Securities            Date: August 24, 2011

Mongolian coal exports recently reached a record USD 1 billion this year. This is over a 120 percent increase from last year, reported Frontier Securities.

Coal exports are currently earning USD 120 million a month and USD 4.5 million each day. Frontier Securities said these prices fall within its predictions for 2011 and predicts an additional 20 percent increase in following years.

The South Gobi mining company produced 1.97 million tons of raw coal. Its increased production is a direct result of its mining infrastructure. At 1.5 million tons, the company sold its coal at approximately USD 53 per ton. This price is a 36 percent increase from 2010.

While profits are rising, companies are battling the rising costs of fuel and screening. However, most gains are from favorable price growth, said Frontier Securities.