Chalco debt will be fully paid within March.

Chalco debt will be fully paid within March.

Prime Minister Mr Erdenebat J announced that Chalco debt will be fully paid in March, 2017. Since 2011, Mongolia has been paying off its USD 350 million debt to Chalco and ETT has been supplying coal from Tavan tolgoi coal mining to Chalco. Tavan tolgoi is one of large-scale mineral deposits that Mongolia expects will stimulate the economy and its coal license holder is ETT.

The rapid growth of coal price has a positive influence on Chalco debt repayment in recent months. Furthermore, state budget income is expected to increase thanks to the increasing coal price.

The country exported 14.5 million tons (USD 555.9 million) and 25.8 million tons (USD 973.0 million) of coal in 2015 and 2016 respectively whereas it exported 4.8 million tons (USD 327.4 million) of coal in first two months of this year.

Source