In order to support the growth and expansion of the company outside of Mongolia and to de-risk from single mine and single country operator TerraCom continues to evaluate cash generative assets for potential acquisition, it said.

“In parallel to the financial restructuring, TerraCom continues to implement its stated growth and development strategy and has successfully transitioned from being an explorer to a coal producer despite the challenging global commodities market through the establishment of the BNU hard coking coal brand in China with the ongoing support of marketing partner and supply chain logistics provider the Noble Group.

“The company is currently working to re-calibrate and optimise its supply chain in Mongolia, which it believes will lead to substantial improvements in its cash margins and profitability.”

The company is also nearing completion of its desktop due diligence on a hard coking coal mining operation in Indonesia. The mine’s production licence has a 12 year remaining life and is located in close proximity to road, barge and port infrastructure which connects into the seaborne coal market.

The mine has a capability of delivering 500,000 tonnes per annum of hard coking coal.