State-owned mines want to charge more for coal

Representatives of coal mining companies urged the Government to raise coal prices at a meeting on September 18. Officials from the Baganuur and Shivee-Ovoo mines, the two major suppliers to power and heating plants, pleaded that they were in a very difficult situation as production costs keep increasing as no significant investment is made to upgrade their technology, while prices are kept frozen. This has led to accumulated loss for them and their revenue can rise only if they are allowed to charge a competitive price for their coal without delay.
Minister of Minerals and Energy D.Zorigt said the Government is examining the suggestion of the Energy Coordinating Office to raise coal prices in stages. The Government would also review next month the question of increased state subsidy for mining companies. He also said MNT12.2 billion will be spent on modernizing the Baganuur mine in stages, and a plan to upgrade Shariin Gol is also under review.
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