Mongolian Mining agrees to pay $464 million for QGX Coal

Mongolian Mining Corp MMC has agreed to pay $464 million for a coking project owned by Hong Kong’s Kerry Group, according to a source.

MMC, which is Mongolia’s biggest coking coal exporter, signed a deal on Tuesday to buy QGX Coal from Kerry Mining and could end up paying as much as $950 million if the mine hits certain targets, making it the biggest acquisition by a Mongolian mining company ever.

QGX Coal owns the Baruun Naran project within the Tavan Tolgoi coal formation in South Gobi, close to MMC’s existing operations. The mine contains 185 million tonnes of confirmed reserves and 282 million tonnes...