Erdenes TT CEO Ya.Batsuuri announced that the only buyer of Tavan Tolgoi coal exports in China has been suspended from January 11th.

The reason is that the company sells export coal per ton at 53 US dollars while the output and transportation costs are 61 US dollars. The company head held negotiations with the Chinese state owned CHALCO on the coal prices.

While Erdenes TT faces financial difficulties negotiations with investors on the West Tsankhi operation have come to a stand-still.

Erdenes TT took 250 million US dollar in advance for a coal supply contract with CHALCO in July 2011. But the state owned company transferred most of the money to the Human Development Fund in order to be distributed to every citizen of Mongolia as part of the free allowance from the mineral resources.

But Erdenes TT needs a 400-500 million US dollar pay-out for debt and to build infrastructure.

The company has already claimed bailout from the Government but it is still unclear how much investment is planned for Erdenes TT.