Severe Diesel Shortage to Disrupt Mining Companies Exports
Russia, the primary supplier of fuel to Mongolia, has substantially cut fuel exports to Mongolia for the month of May.
The issue is related to the Russian fuel deficit situation, and the fact that Russia has generally curtailed fuel exports.
But the timing of stopping the shipment coincides with “Soviet” Meeting, the Government-to-Government Mongolian-Russian JV consultative meeting, before President Ts.Elbegdorj’s visit to Russia. According to some news sources Russians are demanding that “Asgat” silver deposit be removed from “Strategic Mineral Deposit” list. Russians usually offer preferential treatment to Mongolia on many issues, for example, when Russia stopped halted grain export to the world few years ago it was still supplying enough grain to Mongolia.
Media reports have indicated that Mongolian fuel importers have ordered 84,000 tonnes of fuel from Rosneft, the Russian export fuel supplier, for May but will only be allocated 10,000 tonnes. SouthGobi's fuel supplier has claimed Force Majeure and will be unable to meet contracted fuel supply this month.
The diesel shortage also affect Ulaanbaatar City bus transportation system, the Ministry of Mineral Resources and Energy had ordered every third bus be taken out from the service. If the diesel shortage continues for a prolonged time, the hardest hit companies will be coal miners shipping coal to China, the MAK, Southgobi, Hong Kong-listed Mongolian Mining Corporation, MSE-listed Tavantolgoi and Tavantolgoi Trans
The issue is related to the Russian fuel deficit situation, and the fact that Russia has generally curtailed fuel exports.
But the timing of stopping the shipment coincides with “Soviet” Meeting, the Government-to-Government Mongolian-Russian JV consultative meeting, before President Ts.Elbegdorj’s visit to Russia. According to some news sources Russians are demanding that “Asgat” silver deposit be removed from “Strategic Mineral Deposit” list. Russians usually offer preferential treatment to Mongolia on many issues, for example, when Russia stopped halted grain export to the world few years ago it was still supplying enough grain to Mongolia.
Media reports have indicated that Mongolian fuel importers have ordered 84,000 tonnes of fuel from Rosneft, the Russian export fuel supplier, for May but will only be allocated 10,000 tonnes. SouthGobi's fuel supplier has claimed Force Majeure and will be unable to meet contracted fuel supply this month.
The diesel shortage also affect Ulaanbaatar City bus transportation system, the Ministry of Mineral Resources and Energy had ordered every third bus be taken out from the service. If the diesel shortage continues for a prolonged time, the hardest hit companies will be coal miners shipping coal to China, the MAK, Southgobi, Hong Kong-listed Mongolian Mining Corporation, MSE-listed Tavantolgoi and Tavantolgoi Trans
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