LG Corp start production at Mongolian coal mine

A coal mine in Inner Mongolia that LG International Corp. owns a 30 percent stake in will begin commercial production in October, the South Korean trading firm said Monday. In 2008, LG International acquired the stake in the Wantugou mine, 60 kilometers south of city of Erdos, from China's energy group Boyuan. The mine, which has an estimated reserve of 180 million tons of bituminous coal, started test production last year. LG International, the country's biggest coal trader, expects to yield 10 million tons of coal annually from the mine after an initial production of 5 million tons. The company said it plans to acquire other mines in the area also. LG International currently produces 3 million tons of coal from its MPP mines in Indonesia and has also stakes in mines in Australia. Shares of LG International were trading at 38,750 won on the Seoul bourse as of 2:30 p.m., down 12.05 percent.