Mongolia Halts Coal Exports to China-Mining Club

BEIJING, April 20 (Reuters) - The government of Mongolia has halted truck shipments of coal from the South Gobi region to China, with the ban expected to last around two days, Baasanjav Enkhbaatar, the chairman of the Mongolian Mining Club, confirmed on Wednesday.

The South Gobi region is the location of the Tavan Tolgoi property, one of the world's biggest coal deposits. Mongolia has yet to build railway infrastructure in the region, and exporters continue to depend on trucks.

"It has happened because China closed the border yesterday," Enkhbaatar said.

Official Chinese news agency Xinhua said Mongolia suspended coal deliveries following a spate of accidents on a dirt road running from Tavan Tolgoi.

The Mongolian Mining Corporation and South Gobi Resources also have mining operations in the South Gobi region. (Reporting by David Stanway; Editing by Jonathan Hopfner)

By author: admin - Apr 20, 2011 / Categories: News