The leading company in the Mongolian coal sector, Mongolian Mining Corporation (MMC), is going to supply coal to the world’s second largest coal-producing company in the world. Shenhua Group.

As reported by the State Property Committee of the People’s Republic of China, according to the initial agreement, Shenhua Group has agreed to buy 1.2 million tons of coked coal from MMC.

The State Property Committee stressed that this will be the fundamentals for the further development of trade between the two parties. 

A subsidiary of Shenhua Group, China Shenhua Energy, was selected as part of investment consortium, with Japan's Sumitomo Corporation and Mongolian Mining Corporation, to develop and operate the Tavan Tolgoi mine.

Although the Government of Mongolia has reached an agreement with the consortium, it is awaiting further approval by Parliament.

Head of the Tavan Tolgoi working group, Minister of Mongolia M.Enkhsaikhan, said on Twitter last Saturday that the Government Administration Office will verify the consistency of documents for the agreement within 72 hours. If the agreement is  concluded, the consortium will make an investment of 4 billion MNT annually and  export products to five markets.