Abstract: Geological history of Mongolia is long and complex. Sea in the south and continent in the north during Variscian movement, and fault-depression basins during Mesozoic provided good coal accumulation environment. Coal-bearing area in Mongolia is large, including 15 coal basins or subareas. Most of coal resources are distributed in Southern and Eastern Mongolia. At present there are mainly 4 coal export ports to China, and about 95% of production is from Ganqimaodao and Ceke. In addition there is a potential coal export port called Aershan in Inner Mongolia. Based on shortage of good metallurgical coal in China, and situation of exhausted coal resource in Northeast China, comprehensive analysis on resource quality, infrastructure and market reveals that South Gobi and East Gobi coal basins have been regarded as good investment opportunities. Due to limited market and poor infrastructure, the prospect of Western Mongolia is not optimistic in near future.