Mongolian Mining Corporation is pleased to announce that Energy Resources LLC, an indirect wholly-owned subsidiary of the Group, entered into a long-term cooperation agreement with China Datang Overseas Investment Co., Ltd (“Datang”) to supply middling for a period of 10 years commencing 9 April 2012.
Middling, the high calorific value thermal coal produced as a secondary product from the processing of coking coal, is suitable for coal-fired power plant boilers operations. Pursuant to the agreement, the quantity of middling to be supplied will be between 500,000 and 2,000,000 tonnes annually, depending on the availability of the product. The product price will be set based on market price, and will be subject to periodic review.
Dr. Battsengel Gotov, CEO of MMC, commented, “The cooperation agreement presents opportunities to boost our average revenue and operational efficiency, as well as to diversify our revenue sources. We are proud to work with Datang, the leading power generation enterprise in China, as one of our end-use customers, and look forward to the long-term mutual benefits from our collaborative relationship.”
Datang is one of the leading state-owned power generation enterprises in China specialized mainly in power production and supply, power-related coal mine development and production as well as related professional technical services. Currently, Datang has carried out a wide range of businesses, including hydropower, coal-fired power, wind power, nuclear power, coal mining, mineral resources and international trade.