As expected Mongolia has announced that it aims to keep the Tavan Tolgoi coal deposit entirely in state hands. Prime Minister Sukhbaatariin Batbold told the Mongolia Economic Forum that the decision would enable to nation to take a greater return from the 6.5 billion tonne project.
"The 100 percent stake ownership option for Tavan Tolgoi is to ensure that we will benefit from value-added production. The option has been suggested and recommended to the task force responsible." The plan will put before parliament for approval.
Mongolia had previously planned to sell a 49% stake in the project in a deal that would have been worth as much as $2 billion.
Development of the country’s considerable mineral deposits has been slowed by deadlock over the Oyu Tolgoi copper and gold project. Last year the government finally signed a deal to develop Oyu Tolgoi with Ivanhoe Mines and Rio Tinto.
Bidders for Tavan Tolgoi included BHP Billiton, Jindal, Vale, Peabody and Shenhua as well as consortia from Korea, Russia and Japan however the country now looks to go down the contract-mining route with a global miner who won’t be expected to take an equity stake.
Tavan Tolgoi consists of coking coal which is largely used by the steel industry.
1 comment:
No doubt their neighbours will be pleased that the supply is not to be exploited by Western mining companies.
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