Mitsui & Co. signed memorandum of understanding with Mongolian coal company, Erdenes for coal sales to Japan on Monday. They keep talking for details including volume and terms. Mitsui & Co. tries to secure source from existing miner in Mongol while the firm tries to participate in Mongolian coking coal project of Tavantolgoi, which Mongol government tries to develop through international consortium. Mitsui & Co. tries to diversify the coking coal sources while the buyers heavily depend on Australia.
Erdenes produces coal at East Tsankhi area of Tavantolgoi. The site is located in east next of coal field for Tavantolgoi international project, for which Mitsui & Co. tries to participate in through partnership with Chinese coal major, Shenhua Group. Japanese 4 trading firms also try to participate in the project through partners in Russia and South Korea. The project is expected to produce annual 15-30 million tonnes of coking coal but the project would cost heavy money to build rail routes both for China and Far East.Japan Steel Scrap Composite Prices (Sangyo Press)
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