Source: Mongolia Mining Corporation                         Date: 31 August, 2011

Revenues increased by 55.3 percent in the first six months of 2011 for Mongolia Mining Corporation (MMC). Profits reach USD 136.2 million.

MMC earned USD 48.5 million more than last year. The rise in coal prices was the main attributer to success, said the company.

The company spent approximately USD 470 million acquiring QGX Coal Limited. This acquisition included the mining license to the Baruun Naran (BN) coking coal mine. BN mine is located in Umnugobi Aimag in southern Mongolia, approximately 500 km south of Ulaanbaatar, the capital of Mongolia and approximately 60 km east of Dalanzadgad, the provincial center. This property is in addition to its Ukhaa Khudag (UHG) site, located 30 kilometers from BN.

“The sizable coking coal resources and reserves estimated in the BN mine will create the potential to diversify the Group’s coking coal products and to enhance revenue streams,” said the company in an official statement. “The proximity between the BN mine and the UHG mines will enable the creation of synergies such as the sharing of mining and transportation infrastructure and of coal marketing.”

However, earnings per share fell about 22 percent, amounting to USD 0.54. The sales volume amounted to approximately 1.42 million ton of raw coal and 1,000 tons of washed hard coking coal as compared to 1.46 million tons or raw coal last year.

The company sold approximately 1.4 million tons of coking coal at USD 95.6 per ton. Last year's price was USD 59.90 per ton. According to the data issued by the National Statistical Office of Mongolia, Mongolia Mining Corporation exported approximately 1.4 million tons of coking coal, or about 18% of Mongolia’s total coal exports.