Mongolia Energy Corporation Limited (Stock Code: 276) has announced a discloseable transaction involving the construction of a dust suppression wall at its Khushuut Coal Mine in Mongolia.
The company’s indirect wholly-owned subsidiary, MoEnCo LLC, originally entered into a construction contract on 22 July 2025 with Tsolmon Tsohiot LLC. The contract covered building a dust suppression wall in a new customs bonded yard for a consideration of MNT 2,689,459,685 (equivalent to approximately HK$5,863,022). Due to delays stemming from a trial operation of the Khushuut Intelligent Processing Plant (IPP), MoEnCo and the contractor signed a Change Order on 28 November 2025, adding MNT 784,100,374 (around HK$1,709,338) for continuous winter work. This brings the total consideration to MNT 3,473,560,059 (about HK$7,572,360).
A customs bonded yard is a designated area for storing raw coking coal before export, requiring a dust suppression wall around the coal storage zone. The final wall dimensions now planned are approximately 340 meters by 300 meters, with a 12-meter height. Construction progress was hindered by coal dust and ash affecting the site after the IPP’s late-August trial operation, compelling work to continue through adverse winter conditions to ensure completion by early 2026.
Under Hong Kong Listing Rules, the aggregated transactions of the original construction agreement and the Change Order exceed 5% but remain below the 25% threshold. As a result, Mongolia Energy is treating this as a discloseable transaction, subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.
MoEnCo is using internal resources to fund the total contract amount. Tsolmon Tsohiot LLC was selected through an open tender involving seven bidders, based on technical and commercial assessments. The company believes that full and timely construction of the dust suppression wall is essential to its operational objectives at the Khushuut Coal Mine, including relocating existing facilities and protecting the environment through dust control measures.
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