MEC has signed a long term supply agreement with Xinjiang Bayi Iron and Steel which is part of the Baosteel Group. The coking coal supply from Khushuut is expected to start in August with MEC aiming to sell at an FOB price of $120/mt versus a production cost of about $35/mt. Including transportation, its coal may sell at $165/mt. Khushuut is an open-pit mine in Khovd province. MEC has appointed Leighton Holdings as its development contractor.