Baganuur mine

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The Baganuur mine is a brown coal mine in Mongolia which was established in 1978. A 2009 briefing note described the Baganuur Joint Stock Company, the mine owner and operator, as the "biggest coal mining company in Mongolia."

The mine, the briefing note stated, has produced approximately 75 million tonnes of coal since it was opened. According to the briefing note the Mongolian government privatised 25% of its share of the company in 1995 but holds the remaining 75%.

Coal from the Baganuur mine is used to supply the existing Ulaanbaatar 2, 3, and 4 power stations in Ulaanbaatar.

Financing

The expansion and upgrading of the mine has been funded by both the World Bank and the Japan International Cooperation Agency. JICA, which made a 30 year loan to fund new coal handling plants and mining equipment, rates the production capacity of the mine as being 4 million tonnes a year. However, in 2005 it states the actual production was 2.8 million tonnes. JICA also noted that there was concern about the financial viability of the company. Frontier Securities briefing note on Baganuur Joint Stock Company stated that the source of the company's financial problem was supplying coal at a fixed cost due to government regulation while costs gradually increased. Frontier Securities also stated that the World Bank and the Japan International Cooperation Agency funding had been to support the implementation of the Mongol Coal program since 1996.

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Articles and resources

Related SourceWatch articles

• Mongolia and coal

External resources

• "Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine, Mongolia", U.S. Environmental Protection Agency, December 2013. (Pdf)