Page 7 - AsiaElec Week 42 2021

AsiaElec COAL AsiaElec

COVID-19 in Inner Mongolia affect ports, but

coal imports from Mongolia set to jump

CHINA NEW COVID-19 cases in North China’s Inner Despite the short-term disruptions, China’s
Mongolia Autonomous Region are likely to affect coal imports from Mongolia are set to increase
China’s coal imports from its increasingly signifi- sharply given closer cooperation between the
cant coal supplier Mongolia due to disruptions at two countries and ongoing efforts for transpor-
some major ports, according to sources on Octo- tation, officials said.
ber 20, further raising concerns over coal supply “Coal exports to China account for 80% of the
in China as officials moved to address shortages total bilateral trade of goods, which is a very high
and price hikes reports Global Times. level,” Badral said in an interview on Wednesday.
However, some ports remained open for coal More than 3,000 Mongolian drivers are
transport and the impact will likely be temporary engaged in cross-border transportation of coal,
as China and Mongolia have stepped up cooper- he said. And in order to promote bilateral trade,
ation in coal trade. Mongolian Ambassador to the two countries are discussing the wider open-
China Tuvshin Badral told the Global Times that ing of railway freight transport at major ports.
arrangements are being made by both sides to “We look forward to the railway being com-
increase Mongolia’s annual coal exports to China pleted and open for use next year. After the open-
by as much as 50% from 32mn tonnes currently. ing of the railway, exports of coking coal from
Ceke Port, the third-largest land port in Inner Mongolia to China are expected to increase by
Mongolia and a major port for coal imports from 10-20mn tonnes. Currently, Mongolia exports
Mongolia, was closed on Wednesday after dis- 32mn tonnes of coal to China every year, which
cussion among local officials, people familiar will increase by 50% after opening to railway traf-
with the matter told the Global Times. fic at the border,” the ambassador said.
The decision was made after the local health Efforts to boost coal imports from Mongo-
commission said Ejin Banner in Inner Mongo- lia came after Chinese Premier Li Keqiang told
lia, which borders Mongolia, reported five con- his Mongolian counterpart during a meeting
firmed COVID-19 cases on the 19th, and the on October 12 that China hopes to expand coal
port city of Erenhot reported three on 20th. trade and cooperation with Mongolia to achieve
All movements of people and freight were mutual benefits and win-win results.
halted at the Ceke Port on the 20th, according While China imports coal from several major
to the sources. suppliers such as Indonesia, Australia, and Rus-
Another major port, which is the biggest road sia, Mongolia this year has grown to be China’s
port in terms of imports - Ganqimaodu Port in largest coking coal supplier.
Inner Mongolia - was allowed to continue road Power shortages due to tight coal supplies
freight transport, the same source said. have prompted Chinese officials to vow all nec-
In recent days, the number of vehicles cleared essary means to curb irrational coal prices and
at customs daily doubled from the previous expand supplies, including increasing imports.
number of 150 at the Ganqimaodu Port, accord- The irrational rises of coal prices brought
ing to cnenergynews.cn. About 600 vehicles are about a power crunch in China, pushing the
expected to transport coal each day in the future, country’s coal imports up 76% year-on-year to
in order to clear the coal inventory of 8.37mn 32.88mn tonnes in September.
tonnes that has built up in a zone in Mongolia by China’s top economic planner on Tuesday
February 2022. vowed to resort to all necessary means to inter-
Due to the cases reported in Erenhot, road vene in coal prices, as the official stance grows
freight transport was halted on Wednesday in harsher on runaway coal prices that have put
both directions via the Erenhot Port. energy supplies at stake.™

Week 42 20•October•2021 www. NEWSBASE .com P7