China-Mongolia Met Coal War heats up Reuters reports this morning that China's Chalco and the Mongolian Government are at it again with Chalcho threatening legal action if Mongolia fails to deliver met coal worth of $250million. Mongolia complains that the 2011 met coal agreement is not covering costs and wants to sell to China at world market prices. So much of safe met coal supplies for China from Mongolia. About a year ago we had pointed out the China's Northern neighbor, though dependent on China's infrastructure to supply the markets with coal, it would be unlikely that it would sell its coal bellow market prices.Now China has to rely on Australia for its met coal supplies and even Canada or the US.