Mongolian Mining Corp. (00975.HK) expects continuing headwinds in its business this year amid an oversupply in China’s coal industry, Dr. Battsengel Gotov, chief executive of the company, said on Tuesday.
China, which is its major export market, will see an overcapacity of 10 million to 15 million tons this year, compared with 30 million to 35 million tons in 2013, Gotov told reporters at the annual results announcement.
Price will remain under pressure in 2014 but the company doesn’t expect it to decline below current levels, he added.
The company reported a loss of US$58.07 million for 2013, compared with a deficit of US$2.5 million in the previous year. Revenue fell 7.8 percent to US$437.34 million in the period.
Gotov said the company is looking for joint-venture partners to boost its logistical support in China.
A railway linking Mongolia and China’s border to boost coal transportation is scheduled to be completed this year, while the ongoing construction of a 200-kilometer railway connecting the company’s Ukhaa Khudag coal mine in Mongolia’s South Gobi Desert and northwest China’s Gansu province will be finished in 2015, he said.
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