Photo by: Reuters
PERTH (miningweekly.com) – Junior coal miner TerraCom has restarted mining operations at its Baruun Noyon Uul (BNU) coking coal mine, in Mongolia, following a binding definitive offtake agreement with a subsidiary of China’s largest private coal company.
The five-and-a-half-year offtake agreement for hard coking coal provides for an estimated 7.5-million tonnes of coal sales.
TerraCom said on Friday that the offtake agreement with the Kingho Group was the final piece of an alternative supply chain for its BNU coal mine, which the company implemented in 2016.
TerraCom has fully commissioned the BNU mine, and the company said on Friday that it was excited about restarting mining operations to capitalise on the strong coking coal market.