Mongolia has been paying off its USD 350 million debt to the Chinese aluminum company (CHALCO) in the form of all its deliveries of coal from the East Tsankhi section of the Tavan Tolgoi deposit. According to Ts.Tsendmaa, senior specialist at Erdenes Tavan Tolgoi LLC, Mongolia’s debt to the Chinese company now stands at USD 70 million and that the balance will be extinguished during the first quarter of 2017.  Mongolia has been paying off these debts since 2011.

Erdenes TT has been supplying coal from East Tsankhi to CHALCO at the rate USD 59.3 since January. Previously, the coal price stood at USD 27-33. However, coal from West Tsankhi is now being sold for USD 71.5 at the mine.