Baganuur’s coal now available from 55 locations in UB
The government’s project to reduce the price of coal is moving in to its second year with the price of one ton of coal now priced between 100,000 MNT and 200,000 MNT, down from the cost of more than 200,000 MNT last year. Inexpensive, high quality coal from the Baganuur district arrived at Tolgoit Railway Relay Station on October 2, and Prime Minister N.Altankhuyag visited the station to witness its arrival with other delegates. One ton of coal from Baganuur will be sold for 80,000 MNT and one 40 kilogram sack will cost 3,200 MNT.
This year, 700,000 tons of coal has been reserved for distribution at low prices, and 200,000 tons will be sold in the first stage of distribution. In 2012, Baganuur coal arrived in Ulaanbaatar in only four wagons and was sold at ten locations in Ulaanbaatar. This year ten wagons were filled and 55 locations will sell the coal. Around 200 soldiers unloaded and packed the coal from wagons.
Last year’s coal distribution was considered poor and the main reason cited for its inefficiency was that the salaries of the workers distributing the coal was too high. Therefore, the government worked with the Ministry of Defense to hire soldiers for unloading and distribution. While workers received 800,000 MNT for coal distribution last year, the soldiers are being paid 20,000 MNT per day, which totals 600,000 MNT per month. Baganuur Mine, Ulaanbaatar Railway and the Ministry of Energy are also assisting with the work to distribute cheap coal.
The coal will not be distributed in the Bayangol District, as it has been designated a smoke-free district and is ending the usage of raw coal.
The quality of Baganuur district coal has risen and experts say that good policy prevented a radical hike in coal prices this year.
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