Mining and Heavy Industry Minister D.Sumiyabazar has sent an official letter to the Mongolian Customs Office on 12th December 2017. The Minister ordered Mongolian Customs Office to not to provide with customs clearances for coal transporting companies until the 120 km long queue on the Gashuun Sukhait road has been reduced.
State-owned Erdenes Tavan Tolgoi JSC (ETT), Energy Resources LLC and Tavan Tolgoi JSC transport coking coal with trucks to the Chinese buyers. Due to Minister's decision, the coal transportation has been suspended since 13th December to ensure drivers' safety. About 6,000 drivers wait in their trucks to cross the border for over a week in harsh conditions.
ETT Director D.Ariunbold says "Truck transportation is to be resumed when the long-queue-problem has been solved. Suspending coal transportation will not affect our coal supply and coal export revenue". ETT signed a long-term contract with Chalco, a Chinese state-owned company, and sells coking coals for 55-57 USD per ton. Energy Resources trades their enriched coal for 150 USD per ton. Due to the long queue on the road, which has lasted for over a few months, Energy Resource's coal reserve has reached 40,000 tons, worth over 6 million USD.
The Minister's decision to suspend coal transportation is likely to affect Mongolian Copper Corporation and Tavan Tolgoi's stock prices.
Mining and Heavy Industry Minister D.Sumiyabazar has sent an official letter to the Mongolian Customs Office on 12th December 2017. The Minister ordered Mongolian Customs Office to not to provide with customs clearances for coal transporting companies until the 120 km long queue on the Gashuun Sukhait road has been reduced.
State-owned Erdenes Tavan Tolgoi JSC (ETT), Energy Resources LLC and Tavan Tolgoi JSC transport coking coal with trucks to the Chinese buyers. Due to Minister's decision, the coal transportation has been suspended since 13th December to ensure drivers' safety. About 6,000 drivers wait in their trucks to cross the border for over a week in harsh conditions.
ETT Director D.Ariunbold says "Truck transportation is to be resumed when the long-queue-problem has been solved. Suspending coal transportation will not affect our coal supply and coal export revenue". ETT signed a long-term contract with Chalco, a Chinese state-owned company, and sells coking coals for 55-57 USD per ton. Energy Resources trades their enriched coal for 150 USD per ton. Due to the long queue on the road, which has lasted for over a few months, Energy Resource's coal reserve has reached 40,000 tons, worth over 6 million USD.
The Minister's decision to suspend coal transportation is likely to affect Mongolian Copper Corporation and Tavan Tolgoi's stock prices.