Mongolian Mining (HKG:0975) will continue supplying coal to Jiayou International Logistics' (SHA:603871) unit, Inner Mongolia Wanli Trading, for five more years, according to a Hong Kong Stock Exchange disclosure on Tuesday.
Under the agreement, around 1.5 million tons to 3 million tons of various coal products will be delivered between Jan. 1, 2025 and Dec. 31, 2029. Wanli will be Mongolian Mining's designated coal importer and distributor at the China-Mongolia border crossing of Ganqimaodu.
As part of the deal, the services fee to be paid to Mongolian Mining is capped at $75.2 million every year.
The Mongolian high-quality washed hard coking coal producer has been supplying the logistics services provider with coal since 2020, the disclosure added.
Mongolian Mining's shares fell more than 1% in recent trade.
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