Erdenes Tavantolgoi to establish in-country customs for coal exports
Erdenes Tavantolgoi, the largest state owned mining operator company resumed coal exports to Chalco on Monday after a three month halt.
The mining company spends 56 US dollars for exploration, shipment and supply per ton of coal.
Ya.Batsuuri, CEO of Erdenes Tavantolgoi LLC once noted in a interview with news.mn that the company had no choice but to halt coal shipments to China because Chalco set only 53 US dollars per ton of coal.
After Chalco suggested 56 US dollars per ton of coal so Tavantolgoi resumed coal exports to China.
Erdenes Tavantolgoi signed a coal supply agreement with the Aluminium Corporation of China (Chalco) in July 2011 during the time of the former Government.
But according to the agreement Chalco agreed to pay up to 70 US dollars in spite of any coal price surge. Then coal deliveries halted in January because the price paid for the coal was below the cost of production.
The current Government and Ministry of Mining is still in negotiations with Chalco to ensure compliance with the agreement and with market conditions. But it is still early to say what phase the negotiation is currently in.
Erdenes Tavantolgoi used to deliver coal shipments via Customs control in Tsagaan Khad. However the company has now reached a deal with Chalco to establish an inland customs area at the Tavantolgoi site itself in order to export coal to Gants Mod port on the border of Mongolia and China.
The mining company spends 56 US dollars for exploration, shipment and supply per ton of coal.
Ya.Batsuuri, CEO of Erdenes Tavantolgoi LLC once noted in a interview with news.mn that the company had no choice but to halt coal shipments to China because Chalco set only 53 US dollars per ton of coal.
After Chalco suggested 56 US dollars per ton of coal so Tavantolgoi resumed coal exports to China.
Erdenes Tavantolgoi signed a coal supply agreement with the Aluminium Corporation of China (Chalco) in July 2011 during the time of the former Government.
But according to the agreement Chalco agreed to pay up to 70 US dollars in spite of any coal price surge. Then coal deliveries halted in January because the price paid for the coal was below the cost of production.
The current Government and Ministry of Mining is still in negotiations with Chalco to ensure compliance with the agreement and with market conditions. But it is still early to say what phase the negotiation is currently in.
Erdenes Tavantolgoi used to deliver coal shipments via Customs control in Tsagaan Khad. However the company has now reached a deal with Chalco to establish an inland customs area at the Tavantolgoi site itself in order to export coal to Gants Mod port on the border of Mongolia and China.
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