55 Chinese companies sent request for coal exchange
- By Amarjargal Munkhbat -
- Feb 02,2023
Special Plenipotentiary Representative of the government at Erdenes Tavan Tolgoi JSC J.Ganbat gave some information regarding the coal exchange and the implementation of the government order.
He said, “Erdenes Tavan Tolgoi JSC will engage in the coal exchange on February 8 to February 10 and has been preparing for the work. Due to the Chinese Lunar New Year coal transportation has decreased and the exchange dates have been moved from February 1. To sell on border terms, it’s necessary to take responsibility for the transportation of coal to the buyer. In this regard, the State Procurement Department has announced a tender for transportation of coal to the border. Currently, there are 200 applicants for the tender and the final agreements will probably be finished by next week. After organizing the transportation, the price of the coal to be traded will be announced.
Firstly, from our side, we are planning to exchange 200,000 tons of coal and it will increase in stages. For Erdenes Tavan Tolgoi JSC this year, it has planned to export 23 million tons.” They said that the price of the coal will depend on the quality of the coal. Erdenes Tavan Tolgoi decided to sell the coking coal first and then sell coal for energy. When the bid is finished, it will be transported to the highest bidder.
“There are 55 Chinese companies participating in the stock exchange trading of Erdenes Tavan Tolgoi JSC and expressing their willingness to buy coal. The decree issued by the Government and the regulations approved by the Minister of Mining and Heavy Industry related to the trading of coal on the exchange were delivered to the buyer.”
Currently the price of coking coal per ton at Gants Mod port is 170 USD to 180 USD. On February 1, the company will hold a meeting with the stock exchange and give clarifications about electronic trading. When trading coal on the exchange, the lowest price will be offered, and because it is an auction, the price will rise.
Regarding the order given by the government, Erdenes Tavan Tolgoi increased their coal production by 4.2 times, transportation by four times, and export by two times. They were able to increase their income by 3.7 times. In total they brought in 588 million USD. From their income 416.6 million USD was transferred to the Mongol Bank and the rest, 160 million USD, was put towards their loan payment.