Mongolia opens coal tract to investors
| www.sxcoal.com |
Mongolia has shifted its approach to developing a massive untapped coal deposit, offering foreign companies a greater chance to invest in the site after all but shutting them out, source reported.
In recent days, bidders from Japan and South Korea have said they are interested in developing the Tavan Tolgoi coal deposit, located in the South Gobi desert near China’s northern border. Their interest comes as Mongolia’s government abandoned a plan to use contract miners to develop the entire site, which has an estimated 6.4 billion tonnes of coal reserves.
In addition, that makes it the world’s second-largest coal deposit, after the Shengli field in China, according to data provider Raw Materials Group.
It’s a big change in the development strategy. The investors have until Jan. 17 to submit their proposals, a person involved in setting up the new arrangements said.
On Dec 27, a consortium of four Japanese trading houses said they planned to bid to develop the Tavan Tolgoi deposits, spokesmen for the group said. The consortium includes Itochu Corp., Sumitomo Corp., Sojitz Corp. and Marubeni Corp.
Meanwhile, state-run Korea Resources Corp. said it is leading a consortium of 10 South Korean companies, including Posco and Korea Electric Power Corp.
China’s Shenhua Group and Peabody Energy Corp. of the U.S. have shown interest in developing Tavan Tolgoi and are considered likely bidders now that Mongolia has changed its strategy. Shenhua couldn’t be reached for comment.
A spokeswoman for Peabody said they look forward to continuing to engage in the process to develop Tavan Tolgoi as the project evolves.
| Tweet |   
  |
