Chalco predicts 2012 loss, turns to coal (2)

Under the deal, signed in July 2011, Chalco gave E-TT a loan of $250 million to develop its 7.5 billion ton Tavan Tolgoi coal project, with the loans to be paid back in coking coal worth the same amount.

Mongolia has suspended exporting coal to Chalco, claiming the agreed-on prices are lower than the cost of production, and threatened to seek other international buyers, Reuters reported Monday.

Chalco told the Global Times on Wednesday that if the Mongolian side breaches the contract maliciously, the company will pursue legal action.

E-TT refused to comment when contacted by the Global Times on Wednesday.