In a bid to boost coal output with immediate effect, Mongolia has lined up three local firms to mine the West Tsankhi block of the giant Tavan Tolgoi coal mine for a year. Producing coal from the long-delayed project became imperative as Mongolia is under pressure to plug a budget gap and help pay down debt to Aluminium Corp of China (Chalco) amid a sharp downturn in coal prices.
Ts. Delgersaikhan, head of mine planning and technical coordination of state-owned Erdenes Tavan Tolgoi, said the company has finalized a one-year contract for mining at the 888-million-tonne West Tsankhi block to a consortium of three local companies.The Mongolian firms Khishig Arvin Industrial, Mera, and Mongolian National Miner make up the Mongol Uurkhaichid group, which means Mongolian Miners in English.
The deposit is owned by Erdenes Tavan Tolgoi, which has contracted out work at its East Tsankhi deposit to Australia’s Macmahon Holdings and Germany’s BBM Operta.The company expects to mine a total of 5-6 million tonnes this year at the east block and 2 million tonnes at West Tsankhi.