Mongolia to sell stakes in Tavan Tolgoi coal mine

By Admin
Mongolia is looking to sell stakes in 10 state-owned enterprises this year, including stakes in the $4 billion Tavan Tolgoi coal mine, as the country se...

Mongolia is looking to sell stakes in 10 state-owned enterprises this year, including stakes in the $4 billion Tavan Tolgoi coal mine, as the country seeks to revive growth and boost investment, according to Bloomberg.

The Mongolian government is looking to entice overseas investment for its natural resources, which is estimated to be worth $1.3 trillion. Selling stakes in the mine is crucial for Mongolia to concert is mineral wealth into economic gains following two years of slowing growth in gross domestic product, plummeting foreign direct investment and rating agency downgrades.

"We are seeing the next year with much more optimism” after growth slows to 5.3 percent in 2015, Prime Minister Chimed Saikhanbileg said in an interview in London.

• Related content: [SLIDESHOW] Gold Rush: The 'Ninja' Miners of Mongolia

As one of the world’s largest untapped coking and thermal coal deposits, Tavan Tolgoi is estimated to contain 7.4 billon tons of reserves. Efforts to secure a deal for the project, however, have remained mostly deadlocked.

In April, Mongolia’s parliament canceled a deal with a consortium of foreign firms to develop the giant coal mine and in 2011 the country’s National Security Council rejected a deal with US-based Peabody Energy, China’s Shenhua and a Russian-Mongolian consortium.

Byambasaikhan Bayanjargal, the chief executive of Erdenes Mongol LLC which controls the massive coal deposit, said in May a deal to develop the Tavan Tolgoi mine is expected to be reached within the next two months. According to Bayanjargal, about 20 to 30 percent of the mine could be offered to international investors in London or Hong Kong in the next two to three years.

The Tavan Tologi coal deposit is divided into six sections: Ukhaa Khudag, Tsankhi, Bor tolgoi, Bortee and southwest and eastern coalfields. 

Stay connected! Follow us on Twitter and like us on Facebook 

Check out the latest edition of Mining Global


Featured Articles

Startup Arkon Energy pours $28m into Bitcoin mining

Australian-based Arkon Energy has secured $28 million in funding to expand renewable Bitcoin mining efforts

KSA’s SWCC signs agreements for brine mining projects

Projects will extract bromine and other salts and minerals for use across Kingdom’s oil & gas, petrochemical, pharmaceutical and metallurgical industries

Glencore to pay over £275mn over Africa mining oil bribes

Glencore Energy UK has been found guilty of seven corruption offences, and has been ordered to pay over £275mn in fines for bribing officials in Africa

Aya Moroccan subsidiary seals US$100m financing for Zgounder

Supply Chain & Operations

Crypto mining firm Core Scientific may be facing bankruptcy

Digital Mining

Rio Tinto and Wright Prospecting modernise Rhodes Ridge JV

Supply Chain & Operations