Korea Coal Corp. to sell Mongolian mine amid energy resource boom
Sul-Gi Lee
Apr 10, 2023 (Gmt+09:00)
Korea Coal Corporation, a South Korean state-owned firm, is preparing to sell its Khotgor Shanaga coal mine in Mongolia, which it acquired in 2010.
The corporation stated on Monday that it is preparing for bids for the sale, seeing this as an opportune time to sort out its Mongolian mines due to the increase in value of international coal and other energy resources.
The mine was Korea Coal Corp's first overseas acquisition since its founding. The firm stated that with the opening of the Asian Highway in Mongolia and improvements in road infrastructure, foreign companies are showing interest in buying stakes in the coal mine.
The total sale value of the Mongolian mine, including the management premium, is estimated to be around 40 billion won ($30 million). The corporation plans to proceed with the sale of its ownership stake through a bid in consultation with domestic shareholders and select a sale underwriter soon.