(EnergyAsia, July 11 2014, Friday) — Mongolian Mining Corporation said its wholly‐owned subsidiary, Mongolian Coal Corporation Limited (MCCL), and Risun Mining Co Ltd, a subsidiary company of the Risun Group, have agreed to establish a joint venture company to transport, sell and distribute coal in China.
With registered capital of RMB10 million and investments totalling RMB14 million, the new company, Tianjin Zhengcheng Import and Export Trade Co Ltd, will operate from the Tianjin Airport Economic Zone in northern China.
Tianjin Zhengcheng, which will be 51% owned by MCCL, will focus on marketing and selling MMC’s hard coking coal to customers in Hebei and northern Shandong provinces as well as Risun Group’s coke‐chemical plants.
Through this new joint venture, MMC said it now has the potential to expand its market in coking coal and steel to Chinese provinces and regions while contributing to better diplomatic relations between the two countries.
“We are delighted to work with Risun Group, the largest independent coke and coal‐derived chemicals producer and supplier in China. We believe our partnership will expand geographical penetration of our products to the China’s major coke and steel producing areas, by leveraging Risun’s extensive marketing network and channels,” Battsengel Gotov, MMC’s CEO.
“The collaboration with Risun is also expected to strengthen our long‐term relations with end‐user customers by supplying our washed hard coking coal products and give us the opportunity to further expand and diversify our revenue sources.”
MMC is the largest producer and exporter of high‐quality hard coking coal in Mongolia. It owns and operates an open‐pit coking coal mine at the Ukhaa Khudag deposit within Tavan Tolgoi and the Baruun Naran coking coal formation, both located in Mongolia’s South Gobi region. The company was listed on the Hong Kong Stock Exchange in October 2010.
Risun Mining Company Limited, a member of the Risun Group, is one of the biggest coking coal companies in all of China.