Aluminum Corp of China Ltd (Chinalco) , the country’s top aluminium producer, will buy 15 million tonnes of coking coal per year from Mongolia’s Tavan Tolgoi mine over the next three years, it said in a statement seen on Friday.
Chinalco said it had signed the contract with state-owned Mongolian miner Erdenes MGL in July and the first delivery of coal to China was made this week.
Erdenes said in July that Chinalco would resell 30 percent of the coking coal to Japanese trading houses Itochu Corp and Mitsui & Co Ltd , and state-owned Korea Resources Corp .
The government has split the massive Tavan Tolgoi coalfield into two sections for development. The east Tsankhi area is owned by Erdenes TT, which is planning an initial public offering worth an estimated $10 billion, while the west Tsankhi block is being auctioned to miners via an international tender.