Tavantolgoi coal price almost doubled

Economy | Mining
2016-11-22 16:02:21

Ulaanbaatar /MONTSAME/ A government working group and Erdenes Tavantolgoi JSC have negotiated with the operating TTJVCO company on coal price, and settled on commercializing a ton of coal from Tavantolgoi mine for USD 50, which is 80 percent or 1.8 times higher against the previous quarter.

It is estimated that a ton of coal from the East Tsankhi mine can be sold for USD 60, in considering the coal price index and the global market coal price increase. The Erdenes Tavantolgoi JSC also launched the development of the West Tsankhi mine with a purpose to pay more revenue to the government budget.

A consortium of Mongolian companies – SGS, Khishig Arvin and Monnis – has been selected as the main operator at the West Tsankhi, and is expected to produce 1.1 million tons of coal within the first two months.

With the simultaneous operations at both West and East Tsankhi mines, it is expected to pay some USD 100 million in tax to the Government, extinguish the debt to Chalco and TTJVCo and increase the foreign currency flow  in Mongolia.

Tavantolgoi mine will create 5,000 more vacancies as well.