Source:Reuters – Global Times Published: 2013-4-23 0:08:01
Mongolia's massive Tavan Tolgoi coal mine would resume exports of coking coal to China Monday after suspending deliveries in January due to cost pressures, the state firm in charge of the project said.
Erdenes Tavan Tolgoi signed an initial $250 million coal sales agreement with Aluminium Corp of China (Chalco) in July 2011, but halted deliveries in January, saying the price paid for the coal was below the production cost.
The firm, already saddled with huge debts, said it wanted to renegotiate the terms of the Chalco deal.
Late in January, Chalco threatened to take legal action against Erdenes Tavan Tolgoi if it failed to comply with the terms of the contract.
Erdenes Tavan Tolgoi said in a statement Monday that cost-cutting at the mine had allowed it to reduce its losses. It would resume deliveries to Chalco immediately, but was still seeking to renegotiate the 2011 deal.