Mongolia to Grant $355 Million to Erdenes Tavan Tolgoi to Exit Chalco Deal

Bloomberg reported that Mongolia has agreed to give Erdenes Tavan Tolgoi LLC a $355 million loan to facilitate their walking away from a supply deal with China’s Chalco.

As quoted in the market report:

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.

To view the full Bloomberg report, click here.