Bloomberg reported that Mongolia plans to offer foreign investors in power, rail and water projects near the Tavan Tolgoi basin stock in its biggest coal project. The move is part of a bid to improve slumping economic growth in the country.
As quoted in the market news:
Companies that build the infrastructure at Tavan Tolgoi, which has reserves of more than 6.4 billion metric tons, will later have the chance to swap their investments for equity in the mine, Altankhuyag said. Investors may also choose to get paid in coal, he said.
The central part of the coal basin is being developed by state-owned Erdenes Tavan Tolgoi LLC, which sells all of its coal to the Aluminum Corp. of China Ltd, also known as Chalco. The Mongolian miner is in talks with China’s Shenhua Group and Peabody Energy Corp. (BTU) of the U.S. on ‘strategic partnerships,’ Erdenes TT’s Chief Executive Yaichil Batsuuri said Sept. 3.