In a significant boost to its annual revenue stream, a Mongolian Mining Corporation (MMC) subsidiary has signed a long-term contract with China Datang Overseas Investment to supply middling for the next decade.

Middling is the high calorific value thermal coal produced as a secondary product from the processing of coking coal and is used in coal-fired plant boiler operations. The contract will see between 500,000 and 2 million tonnes of middling supplied annually at market price.

MMC’s chief executive officer Dr Battsengel Gotov says, “The cooperation agreement presents opportunities to boost our average revenue and operational efficiency, as well as to diversify our revenue sources. We are proud to work with Datang, the leading power generation enterprise in China, as one of our end-use customers, and look forward to the long-term mutual benefits from our collaborative relationship.”

Datang is one of the leading state-owned power generation companies in China which specializes mainly in power production and supply, power-related coal mine development and production as well as related professional technical services.

MMC is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates an open-pit coking coal mine at the Ukhaa Khudag deposit within the Tavan Tolgoi coal formation, as well as the Baruun Naran coking coal deposit, both in South Gobi.

In June 2011 MMC commissioned Mongolia’s first coal handling and preparation plant at the UHG mine, solidifying its position as the leading coking coal miner in the country.