Mongolia’s Cabinet has set up a working group to prepare the Borteeg block of the Tavan Tolgoi coal deposit for investor-led development, launching an international Expression of Interest (EOI) on January 9 to invite proposals.

🔭 How large is the deposit?

Borteeg is part of the sixth group of deposits at Tavan Tolgoi. According to the 2020 feasibility study, the deposit contains 424 million tons of coal reserves, of which 95% is low grade coking coal and 5% is thermal coal. A new feasibility study is scheduled to be completed in the first quarter of this year. The deposit lies within the special license area owned by Erdenes Tavan Tolgoi JSC, which also controls other major Tavan Tolgoi deposits, including Tsankhi, Bortolgoi, and Onchharaat.

🕵️‍♀️ Recent Case

Last year, MTAS Partnership, which includes Admineral, allegedly affiliated with former Speaker of Parliament D. Amarbayasgalan, was awarded a tender in 2021 to provide soil stripping, coal mining, drilling, blasting, and coal enrichment services at Borteeg within the Tavan Tolgoi deposit group. However, the contract was terminated in 2025.

🧮 Let’s Do Math

In 2024, Mongolia’s coal exports rose 14.4% year-on-year to 95.8 million tons, bringing total coal exports over the past 8 years to 412.3 million tons. This volume is roughly equivalent to the entire coal reserves of the Borteeg deposit, meaning that, once brought into economic circulation, Borteeg alone could match 8 years of Mongolia’s coal exports.

Finally… The fact that low grade coking coal dominates the Borteeg deposit is a strong positive signal. Low grade coking coal commands higher prices and enjoys stronger demand than thermal coal. The government believes that developing Borteeg could significantly increase state revenues, enhance the national wealth fund, and ultimately expand the benefits of natural resources to the public, helping address key social challenges.