'Erdenes Tavan Tolgoi' JSC increased its East Tsankhi's coal price by 70 cents per ton to USD 60 supplied to 'Chalco'. The company will increase the price to USD 61.35, and the proposal was reviewed by 'Chalco'. 'Chalco' decided to respond within this week after introducing it to the Board. The coking coal of 'Erdenes Tavan Tolgoi' JSC is being sold at USD 68.1 per ton and the energy coal is sold at USD 12.1 at the mine site. Under the terms of the agreement signed in 2011 with 'Chalco', the company is aiming to improve the pricing mechanism or price indexing mechanism, depending on market conditions.

In this regard, representatives of "Erdenes Tavan Tolgoi" LLC met with 'Chalco Trading Hongkong' last week. One index was added to the four existing indices. As a result, 60 percent dependency from 'CR China Coking Coal Price Index' dropped to 30 percent. It means that East Tsankhi's coal will be sold at relatively close price with the West Tsankhi's coal over the next 1-1.5 years, and substancial price fluctuations will be reduced. 

Source: BloombergTv.mn