MONGOLIA ENERGY subsidiary enters into a construction contract with Khushig Uul LLC to build a new garage and other buildings at the Khushig Uul coal mine

According to the news from Zhitong Finance and Economics APP, Mongolia Energy (00276) announced that on July 16, 2024, MoEnCo (the company's indirect wholly-owned subsidiary in Mongolia, MoEnCo LLC) entered into a construction contract with contractor Khushig Uul LLC to build a new garage and other buildings at the Hushuotu coal mine, with a total contract value of 3.816 billion Mongolian Tugrik.

Under the construction contract, the contractor is responsible for building a new garage and other buildings at a new location at the Hushuotu coal mine, including a garage that can accommodate 18 trucks (including the construction of hardened floors around the garage), an employee canteen, a car wash room, and toilets and shower facilities for employee use.

The announcement stated that the contractor was selected through an open tender process, with four bidders, including the contractor, submitting bids for the Group's consideration; the total amount payable under the construction contract was determined after open tendering and fair negotiation between MoEnCo and the contractor; and the need to relocate supporting facilities to a new area within the mining area to continue the mining plan. The Board believes that the terms of the construction contract are concluded on normal commercial terms, fair and reasonable, and that entering into the construction contract and the related transactions contemplated thereunder are in the overall interest of the company and its shareholders