Mongolia's government is stepping into 2025 with ambitious plans for economic growth. The proposed budget, presented to Parliament last month, outlines record spending on infrastructure, supported by optimistic projections for the mining sector. Central to this strategy is the nation’s goal of boosting coal exports by 20% to 83 million tonnes.
Alongside increased production of copper, gold, and iron ore, this surge in coal exports forms the backbone of the government's revenue plan.
However, these bold targets hinge on Mongolia’s ability to navigate the complexities of external markets, particularly China's economic deceleration. As China, Mongolia’s primary trading partner, faces slower growth and reduced demand for raw materials, questions arise over the feasibility of Ulaanbaatar’s ambitious growth goals. Some private coal miners are reportedly struggling to sell coal via open bids, as Chinese buyers adopt a cautious approach amidst potential price declines.