Mongolia's state-owned miner Erdenes Tavan Tolgoi (TT) LLC has signed a $250 million deal to sell coal from the east Tsankhi deposit to Aluminium Corp of China Ltd, also known as Chalco, it said in a statement on Wednesday.

Erdenes TT, which owns the Tavan Tolgoi deposit, said Chalco would resell 30 percent of the coal to Japanese trading houses Itochu Corp and Mitsui as well as state-owned Korea Resources Corp.