Reuters cited China’s State-Owned Assets Supervision and Administration Commission (SASAC) as saying that the deal between the Chinese and Energy Resource is likely to "build good foundations for future cooperation in trade and other activities".
Sumitomo Corporation, Energy Resources, and Shenhua are already a part of a consortium, which is likely to take over operations at the massive Tavan Tolgoi coking coal mine located near to Mongolia’s border with China.
Earlier this year, the Mongolian government agreed to hand over the construction and operation of Tavan Tolgoi mine to the consortium in an attempt to revive its sinking economy.
However, the handover is yet to get approval from the Parliament.
Upon getting acceptance from the Parliament, a $1bn railway link connecting the mine directly to China customers could be constructed.
