Ulaanbaatar: Mongolian Mining Corporation (MMC), the largest internationally listed private mining company in Mongolia, reported a 28 per cent year-on-year drop in coal output for the second quarter ended June 30, 2025, amid operational headwinds.

According to BERNAMA News Agency, MMC’s unaudited operational update revealed that run-of-mine coal production from its Ukhaa Khudag and Baruun Naran coking coal mines fell to 3.43 million tonnes, compared with 4.79 million tonnes in the same period last year. Quarter-on-quarter, production declined seven per cent.

Despite the reduced run-of-mine output, MMC managed a slight increase in processed coal output, reaching 2.18 million tonnes of washed coking coal, which marks a three per cent rise from the first quarter of 2025. However, year-on-year production saw a two per cent decline. The company conducts its coal mining operations through its wholly owned subsidiary Energy Resources LLC and majority-owned subsidiary Khangad Exploration LLC in the Umnugobi province.

Sales of washed coking coal rose nine per cent quarter-on-quarter to 1.74 million tonnes but remained 25 per cent lower than the same period last year, as per the company statement. In addition, MMC announced that its gold mining joint venture, Erdene Mongol LLC, has completed commissioning activities at the Bayan Khundii gold project, with commercial production expected to begin in the third quarter of 2025.

Gold sales are set to be conducted at international market prices to the Bank of Mongolia and/or its designated commercial banks, in local currency, and subject to a five per cent royalty tax under Mongolia’s Minerals Law. MMC, which is also involved in copper and other non-ferrous metals, is looking to expand its resource portfolio across Mongolia’s southern and western regions.

Listed on the Hong Kong Stock Exchange, MMC is a key supplier of metallurgical coal to the Chinese steel market.