Mongolia Loan May Help Tavan Tolgoi Exit Chalco Deal, CEO Says
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Mongolia pledged to give Erdenes Tavan Tolgoi LLC, its largest coal company, a $355 million loan that Chief Executive Officer Yaichil Batsuuri said may be used to help it exit an agreement to supply China.
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 yesterday 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.