Mongolia: Mongolia's largest washed hard coking coal producer and exporter, Mongolian Mining Corporation (MMC), reported a nearly 36 percent year-on-year drop in revenue to US$346.6 million for the first half ended June 30, 2025 (1H2025), as weaker coal prices dampened earnings despite stable sales volumes. (US$1=RM4.20)

According to BERNAMA News Agency, MMC stated it sold approximately 4.2 million tonnes (Mt) of washed coal products, comprising 3.3 Mt of primary products and 0.9 Mt of secondary products. Sales volume remained at similar levels compared to the first half of 2024; however, revenue declined as average selling prices (ASP) softened due to weaker market sentiment during the period.

Despite the coal market slump, the company is optimistic. Its Chief Executive Officer, Dr. Battsengel Gotov, pointed to improving market sentiment in the third quarter (Q3) of this year and emphasized that MMC remains committed to diversifying its portfolio.

In 1H2025, the group's gross profit was approximately US$62.9 million, while the net loss attributable to equity shareholders was approximately US$23.3 million, compared to a net profit of US$133.0 million for the corresponding period in 2024. The decline was primarily due to lower ASP, as well as a one-off loss of US$25.0 million related to debt refinancing.

However, the group successfully advanced construction works to develop the Bayan Khundii (BKH) gold mine located in Bayankhongor aimag (province) in Mongolia. During the quarter ended June 30, commissioning of the BKH gold mine processing plant and site support facilities such as power, heat and water supply infrastructure, laboratory, and warehouse were conducted by relevant authorities.

Initial overburden removal operations commenced at the end of the second quarter, with commercial gold production expected to begin within Q3 of this year.