The coal reserves of this project are the data of former Soviet geologists in1960s. The company claimed that the Mongolian Institute of Geology and Minerals provided the reserves data. The Financial Times searched for Mongolian institutions, but no such institutions were found.
The company claims that Mongolian coal can be transported to Xinjiang, but there are also a large number of coal mines in Xinjiang, so there is no need to walk so far.
The company signed a coal mine base facility contract with China Airport Construction Group Company, with an amount of only 39.86 million RMB, which is not enough to build a million-ton coal mine facility.
The company claims to have signed letters of intent for cooperation with so-called state-owned enterprises such as China Oil and Gas Corporation, State Power Investment Corporation and China Aerospace Technology Development Corporation, but it can't find similar information about these companies with well-known state-owned enterprises.
The coal mines in Mongolia are basically owned by their owners, and people question whether the company can really easily obtain exploration licenses for minerals.
Mongolian Energy admitted that the "China Petroleum Company" it cooperated with was not China Petroleum, but a "state-owned enterprise mainly responsible for the distribution of large-scale projects".
Another question is why Mongolian energy can easily obtain valuable resources, but it has done little for Mongolia. Mongolian Energy then clearly explained that the nature of Mongolian energy needs to do a lot for Mongolia. Mongolia Energy needs to build an existing highway from western Mongolia to the border between China and Xinjiang, and at the same time, Mongolia Energy needs to build two 600 MW power plants worth 6.5 billion yuan. Therefore, Mongolian energy companies need huge investment to help develop western Mongolia, create employment opportunities for it and provide it with electricity. Mongolian energy company hopes to minimize the impact on the environment.