Erdenes Tavantolgoi LLC has concluded an agreement to sell coal to the Chinese state-owned company Chalco, but few details have been made public. Chalco will make an advance payment of USD250 million which would go into the Human Development Fund, and not to developing the mine.

The Executive Director of Erdenes MGL LLC, B.Enebish, has said the advance payment would be made before 1.5 years from now, but he has not said what price has been decided upon for the coal. Many have a feeling that Chalco has agreed to the advance payment only if it gets coal at lower than the market price.