Coal production in Mongolia has increased rapidly from 2009 due to Chinese strong coal demand. After development of Tavan Tolgoi coal mines, Mongolia became the fifth largest exporter of coking coal in 2013, and has played a significant role on the supplier. Coal resources in Mongolia are distributed mainly in 15 Carboniferous to Cretaceous coal basins where approximately 320 coal deposits have been identified. Occurrence of these coal deposits shifted from west to east of Mongolia through geological time. Coal production of the country until 2007 was yielded mainly from lignite mines that had developed for domestic market during socialism system, but did not exceed 10 million tons per annum. It increased to 24.4 million tons per annum in 2014 by newly developed coal mines, Erdenes Tavan Tolgoi coal mine, Ukhaa Khudag coal mine and Nariin Sukhait coal mine, etc., which produced high quality Permian coking coal in South Gobi basin. In addition, Erdenes Tavan Tolgoi coal mine, the West Tsankhi area is currently put on the table of negotiation between the Mongolian Government and a consortium of Shenhua Energy Co., Ltd, China, Sumitomo Corp., Japan, and Energy Resources LLC, Mongolia. After a full-scale operation on this mine, the amount of coking coal production in Mongolia would be increased more with the importance of Mongolia expected to rise significantly as a major coking coal supplier.