COAL TRANSPORT AGREEMENT WITH NORTH KOREA WAITS FOR RUSSIAN APPROVAL

North Korea has replied positively to a call to supply Mongolian coal to North Korea. However, approval from Russian authorities is still required to finalize the transport of coal across Russian territory. 

Next month international freight forwarders will meet and agree in advance on which companies will be permitted to transport coal through Mongolia, China, Russia, and North Korea, and in what quantities.

Mongolia has reached an agreement with the Russian side and is working to sign a tariff protocol, and all preparations for technology and labor for the transportation of 25,000 tons of coal to North Korea are reported to be complete.

The outcomes of an official visit by the Minister of Foreign Affairs of North Korea in February will be discussed soon by the Cabinet, and more detailed information regarding the transportation of coal to the DPRK will become clear.

Enterprises carrying freight by train in Mongolia, Russia, China, and North Korea will participate in an upcoming meeting on railways. The meeting organized by the Railway International Cooperation Organization was held in Beijing last year and will be held in Ulaanbaatar in 2015.

If an agreement can be reached with Russia in the upcoming meeting, the following questions will be answered: if Mongolia transports 25,000 tons of coal to North Korea, who will be the end user; what is the importance of Mongolia transporting this coal; which mine will the coal come from, and what will be the cost of one ton of coal?

Following the Foreign Affairs Minister