Jiayou International, through its wholly-owned subsidiaries of Jiachen International and Jasn International, signed a total of 6 million tonnes primary coking coal supply chain trade contract with Bodi International, to meet the rising demand from its customers in Chinese steel mills and coke plants, the company announced on February 8.
The supply will come from Tavan Tolgoi coal mine in Mongolia.
Registered in Mongolia, Bodi International is the general contractor of Tavan Tolgoi-Gashuunsukhait railway project under Erdenes-TavanTolgoi JSC (ETT). According to a financing agreement between the two parties, ETT will use coal to pay for the construction costs of Bodi International.
ETT, a Mongolian state-owned coal miner, is a wholly-owned subsidiary of Mongolian Erdenes Mongol LLC. It mainly operates TavanTolgoi coal mine at 190 kilometers away from the Gashuunsukhait/Ganqimaodu border crossings on the Mongolia-China border.
TavanTolgoi coal mine is the largest coal field in Mongolia and one of the most competitive coal fields in the world, holding estimate reserves of 6.4 billion tonnes, including 1.8 billion tonnes of high-grade primary coking coal and 4.6 billion tonnes of thermal coal.
The mine is an important strategic resource for Mongolia, highlighting premium coal quality, simple geological structure and shallow depth of coal seams.
(Writing by Shengnan Liu Editing by Emma Yang)
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