Mongolia’s rapid growth and logistics options

An article in the Economist (Jan 21, 2012) describes the rapid growth of Mongolia’s coal mining industry, with output expected to grow from 16 million tons in 2013 to 240 million tons by 2040. Worried about being too dependent on China as a customer, plans are afoot to build rail line to take the coal to Russia and then to Korea and Japan. Other plans include taking the coal to the China-North Korea border and then to South Korea.   Will the abundant supply of coal suggest usage at location to produce electricity or other product that consumers electricity ?  Given the logistical challenges, are estimates of such rapid Mongolian growth merely vaporware ? Given the worries about coal and its pollution impact, will world demand for coal dampen the enthusiasm of the miners over time ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , , . Bookmark the permalink.

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