Baganuur mine continues to face 3,500 MNT loss per ton of coal
- By Dulguun Bayarsaikhan -
- Oct 10,2019
Together with Shivee Ovoo, Baganuur mine supplies more than 90 percent of coal consumed in the central region despite facing a loss of 3,500 MNT per ton of coal sold, reported Erdenes Mongol LLC in a statement on Monday.
In particular, Baganuur mine produces a ton of coal for 37,000 MNT but sells it to thermal power plants for 33,500 MNT.
On the other hand, Shivee Ovoo mine produces a ton of coal for 31,500 MNT and sells it for 29,600 MNT, facing a loss of 1,900 MNT per ton of coal sold.
Erdenes Mongol reported that prices of Shivee Ovoo and Baganuur are regulated to alleviate burdens of the public. However, their deficit continues to grow. As repeatedly mentioned by mining officials, this accumulated debt as well as underpayment of thermal power plants are causing financial burden for the country. Thermal power plants reportedly owe three billion MNT to Baganuur mine and 4.1 billion MNT to Shivee Ovoo mine.
Baganuur mine supplies coal to the second, third and fourth thermal power plants, and plants in Darkhan, Erdenet, Amgalan and Nalaikh. Meanwhile, Shivee Ovoo mine supplies coal to Thermal Power Plant No. 4, Khutul, Amgalan, Nalaikh, and Donorgovi mine.
Erdenes Mongol announced on Monday that the winter preparation of Baganuur mine has reached 90 percent completion rate, while Shivee Ovoo’s has reached 86 percent.