The developments are said to be in line with company’s plan to repay the debt it owes to Aluminum Corp. of China and Development Bank of Mongolia.
In an interview with Bloomberg, Erdenes Tavan Tolgoi chief executive officer Yaichil Batsuuri revealed that the company would select the contractor in next few months and it has set a target of producing 2.6 million metric tons for 2013.
Batsuuri claimed that the move was made to increase its production and to surmount its financial fiasco.
The company owes $186m of fuel delivery to Aluminum Corp. of China and an additional $200m to Development Bank of Mongolia.
Besides, the company is planning to raise the coal production at East Tsankhi deposit to 5 million tons, compared to 2.5 million tons in 2012, added Batsuuri.
The company is also mulling over forging a joint venture with overseas miners such as Peabody, Anglo-American and Shenhua citing the inexperience of not producing more than 10 million tons per annum.
