Is China buying of 1bil tons coal a good news for Mongolia, Nov 2013

Since China’s Shenhua has agreed to buy 1 billion tons of Mongolian coal, lots of media have reported about the news. Given that Mongolia only exports 10mil+ tons of coal to China so far this year, the size is significant.

Therefore, the news is generally welcomed in Mongolia. But, we feel this is not necessarily a good news for Mongolia. Therefore, we want to explain the reasons below.

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