Mongolia to Choose Tavan Tolgoi Coal Mine Contractor This Month, Bloomberg

Mongolia will use a bidding process this month to choose a contractor to mine in Tavan Tolgoi, a region with one of the world’s largest untapped deposits of coal for making steel, a Ministry of Finance official said.

“The auction will be decided by the end of this month and the operation of the mine will be handed over as soon as possible, perhaps in December,” Dorjkhand Togmid, deputy director-general at the ministry’s development financing and cooperation department, said today in an interview in Tokyo. Togmid was attending a Mongolian-Japanese business forum.

China Shenhua Energy Co., the biggest Chinese coal producer, is among the companies that have said they want to develop Tavan Tolgoi.

Mongolia plans to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Dashdorj Zorigt, the country’s minister for minerals and energy, said on Aug. 3. Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund $1.5 billion of the initial development cost, he said. The shares will be sold in Mongolia and overseas.

Zorigt said in October the government is seeking investment in railroads and other infrastructure to temper risks associated with a mining boom. Linking Tavan Tolgoi with an industrial park at Sainshand, the capital of Dornogobi province, will cost $2 billion, the Ministry of Finance’s Togmid said today.

Mongolia’s railway policy calls for new track to be laid in the existing broad gauge or 1,520 millimeters (5 feet) that is also used in Russia, rather than China’s standard gauge, according to presentation materials for a speech today by Chuluunkhuu Ganbat, adviser to the Minister of Road, Transportation, Construction and Urban Development.

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By author: admin - Nov 16, 2010 / Categories: News