Reuters: Japan’s Sojitz aims to triple Mongolian coal sales to China

Sojitz Corp, Japan’s third-biggest coal trader, aims to more than triple Mongolian coal sales to China within three years as it seeks to handle 10 percent of the country’s growing sales of the mineral to the world’s top consumer. Sojitz, Japan’s sixth-biggest trading company, expects its acquisition of a 10 percent stake in Mongolian resources and coal distributor – Inner Mongolia Zhongmeng Coal Co, a unit of Inner Mongolia Erdos Group – to help boost its China sales, Masaaki Bito, Sojitz’s general manager, told Reuters. Chinese firms are collectively the world’s largest spot buyer of thermal coal, but their demand for coal has flagged in recent months due to an oversupply of the fuel in Asia. The Australian Newcastle coal spot index, the benchmark for Asia, has dropped below $84 per tonne, down 26 percent from the beginning of the year, while Chinese domestic coal prices have slipped about 8.5 percent during the same period. To read the full article, click hereJapan’s Sojitz aims to triple Mongolian coal sales to China

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