Coking coal exporter Mongolian Mining Corp (MMC) has entered into an asset purchase agreement to acquire the QGX Coal for $464m.

The coal mine has been acquired from a unit of Kerry Holdings, which will receive $380m in cash and $85m in convertible loans.

The acquisition will help MMC expand its presence in the coking coal mining business in Mongolia.

The coking coal mine is estimated to have 185 million tonnes of reserves and about 285 million tonnes of coal resources.

Kerry Group can get additional cash and royalties if the reserve estimates are confirmed within 18 months following the deal.