Creamer Media’s Mining Weekly / Reuters: Chalco in new Mongolia coal deal even as Mongolia govt balks

China’s state-run aluminium giant Chalco has stepped up its pursuit of Mongolian coal, announcing a second deal this month despite signs that Mongolia’s government is seeking to derail an earlier deal. Resource-rich Mongolia has become an attractive target for Chalco or the Aluminium Corp of China Ltd which has long sought to diversify away from aluminium. But while Mongolia has opened its doors to foreign investors over the past decade and has willingly sold coal to China, Chinese companies have found it hard to access Mongolia’s vast copper and coal mines directly due to Mongolia’s historic mistrust of its giant neighbour. Chalco said it would pay $308-million for a stake of almost 30% in Winsway Coking Coal Holdings Ltd, a big buyer of Mongolian coking coal and a deal that would complement its proposed purchase of a majority stake in SouthGobi Resources Ltd, which owns four coal projects in Mongolia. To read the full article, click hereChalco in new Mongolia coal deal even as Mongolia govt balks

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