ULAN BATOR - A Mongolian and a Chinese mining company have signed a coal deal worth $250 million, local media reported Friday.
Under the deal, the Aluminum Corp. of China Ltd. (Chalco) will purchase coking coal worth $250 million as an advance payment from Mongolian state-owned company Erdenes Tavan Tolgoi (ETT), which holds the license for the giant Tavan Tolgoi coal deposit in Mongolia's south Gobi region.
The South Korean company Korea Resources Corp. (Kores) and the Japanese companies Itochu and Mitsui signed a memorandum of understanding on purchasing 30 percent of the coal from Chalco.
About 50 high-ranking Mongolian and Chinese officials, including Chinese Ambassador to Mongolia Wang Xiaolong, attended the signing ceremony.
Earlier this month, the Mongolian government said it has chosen China Shenhua Energy, US mining giant Peabody Energy and a Russian-Mongolian consortium to develop the coal mine.