China turning to Mongolia for coking coal
As China continues to step up steel production, it will require increasing amounts of coking coal, which is needed to fire blast furnaces. Although China currently meets more than 90 percent of its own coking coal needs, its domestic supply cannot keep up with growing demand. China will become increasingly dependent on other countries for the resource, especially nearby Mongolia, which contains huge, largely untapped reserves.
Sources: AME Mineral Economics (Hong Kong); Winsway; Standard Chartered. By Patterson Clark and Laris Karklis/The Washington Post.