The Baganuur Joint Stock Company is a strategically important mine, located in 130 kilometers east of Ulaanbaatar, supplying over 70% of the coal required for the Central regional electric system. It is considered as one of the biggest open coal mines in Mongolia, equipped the world’s leading machinery and technology. The mine contains 599,818 million tons of coal and has the capacity to extract 3 million tons of coal annually.
Baganuur mine currently supplies most of the coal, consumed by the five combined heat and power plants in Ulaanbaatar, Darkhan, and Erdenet as well as by the country’s main industries and small consumers.
Although Baganuur was planning to mine 3.3 Million tons of coal in 2012, it produced 3.54 Million tons in total. It plans to mine 3.5 Million metric tons of coal in 2013.
The mine is located next Baganuur city, established in 1980, following the launch of the open pit coal mine. With a population of 27,000, the city plays an important economic role in the region. Baganuur railway station has the capacity of handling 4 Million tons of freight. Its power plant supplies electricity to thousands of household in the central region.
Mongolia is estimated to have potential reserves of 125 billion metric tons. Much of the coal found in Mongolia, and near the Baganuur mine contains only small quantities of ash and sulfur making it ideal for thermal power generation.