Erdenes TT ramps up production to make up for price fall

Source: UB Post

Erdenes Tavan Tolgoi LLC is ramping up production and sales while global coal prices remain weak, according to a managing official. “The market conditions will not improve,” said Managing Director N. Nyamgerel. He said company projects exports to double in 2015 from the year before, to 11 million tons. Projected revenue for the first quarter of 2015 was MNT34 billion, with MNT 3.3 billion in net profits. Buyers in China include Bayannuur Puushin Coal Industrial and Wulate Zhoungql Alion Resources Company, and the state-owned miner is expanding exports to Russia, he added.

Erdenes TT has concentrated on increasing efficiency during the market downturn, with trucks now making shipments on a 24-hour timetable.  Operation costs are down, too, with the establishment of a new customs stockyard in Mongolia to replace the Tsagaan Khad facility across the border. Those savings will help the company make a dent in the MNT175 billion in coal deliveries owed to Aluminum Corp. of China Ltd.