Mongolia Loan May Help Tavan Tolgoi Exit Chalco Deal, CEO Says - Bloomberg: "Erdenes Tavan Tolgoi may use the funds to pay the $180 million it owes Aluminum Corp. of China Ltd. as part of a supply contract signed in 2011 for steelmaking coal, Batsuuri said today in an interview in Ulan Bator. The $250 million that Chalco, as the Chinese company is known, gave the Mongolian miner as a prepayment can be repaid with coal or cash, he said.
Erdenes TT, as the state-owned company is known, halted deliveries to Chalco on Jan. 11 after it failed to pay a company that provides logistical support amid a cash crunch. The coal supplier is also seeking revisions to the contract signed with Chalco (2600), it’s biggest customer, because prices were set at a level that’s now below the cost of extracting and delivering the coal, Batsuuri said."
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Erdenes TT, as the state-owned company is known, halted deliveries to Chalco on Jan. 11 after it failed to pay a company that provides logistical support amid a cash crunch. The coal supplier is also seeking revisions to the contract signed with Chalco (2600), it’s biggest customer, because prices were set at a level that’s now below the cost of extracting and delivering the coal, Batsuuri said."
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