Since the fall of coking coal price in the world commodity market, the Mongolian coal exporters faced some difficulties to cope with high transportation cost and low coal price. Mongolian national company, daughter of MCS Group, Energy Resources LLC was no exception. The coal exports halted to the level it had to stop mining operations.
Energy Resources LLC is listed through its Cayman Island registered, Hong Kong listed Mongolian Mining Corporation under the code 975. It is logical that the share price has been falling from the end of last year.
The company employs 2600 people directly and about 7000 people indirectly. The coal export accounts for 40% of the state-budget and Energy Resources is one of the big chunks. Halting the operation means a significant pressure for the budget. Last month it announced unpaid leaves for its mine-field staffs, and plans to decrease the office workers in Ulaanbaatar. Also, a pressure for its employees.
However, a person familiar with the internal operations of the company told Business-Mongolia.com that the company is planning to resume its operations within a month due to renewed negotiations with the importers in China.
It is a good news that coal exports are resuming in Tavan Tolgoi mine.