Baganuur coal mine has been under operation for 31 years. It mines three million tons of coal and supplies power stations. It sells 1 tons of coal for ₮16200 and receives loss of ₮3720 per ton. It has been making request to liberate coal price since 2000 and the Government hasn’t made any decisive step towards the problem. Due to this accumulated problems, it has debt of ₮89.9 billion and accumulated loss of ₮32.5 billion. But it has total assets of ₮67.9 billion. If it continues, company condition will become worse. Only decision is to liberate coal price.
The issue of liberating coal mines from debt chain and loss
With initiative of the Research and Development Center of the State Great Khural, Standing Committee on Economy and Ministry of Mineral Resources and Energy, the conference on relieving coal mines from loss, at the Government House.
Senior management of coal mines and coal exporting companies and MPs, representation of Ministry are attending the forum. Mongolia takes 10th place in the world with its coal reserve and increasing export would surely help Mongolia’s economy. But necessary measures are needed to be taken to revive coal mines, which supply power plants, to relieve their debt and lessen their losses, otherwise, Ulaanbaatar, Darkhan, Erdenet cities are facing the risk of total freeze. Therefore, participants emphasize the importance of liberating coal price and privatization of state owned coal mines.
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