A Mongolian government and Erdenes Tavan Tolgoi working group has upgraded the agreement with TTJVCo to raise the average selling price for coal by 85% to USD 50 per tonne in December.

Erdenes TT company will purchase coal for USD 60 per tonne at the East Tsankhi block in first quarter of 2017 on the basis of the coal pricing index and the coal market price.  

Three companies, ‘SJS’, ‘Khishig Arvijakh’ and ‘Monnis’ are  extracting coal at the West Tsankhi block of the Tavan Tolgoi mine. They plan to mine  1.1 million tonnes coal at the West Tsankhi block.

The East and West Tsankh blocks will help to generate USD 100 million tax revenue in first half of 2017 and to pay off the loan to Chalco and TTJVCo.