The coal mine project at Tavan Tolgoi in Mongolia is all set to move ahead with the government being deep into negotiations to appoint an operator for the mine. About six different companies have bid on operating the large coking coal resource. The ownership of the mine will remain with the government.
The Mongolian government is currently taking into account all the implications of developing the mine and its related infrastructure. The infrastructure could include railway and a new port to transport the coal. Being one of the largest under developed coal deposits in the world has made the Mongolian mine a popular one for major mining companies across the world.
Companies who are interested in operating the mine include US’s Peabody Energy Corporation, Brazil’s Vale SA, steelmaker ArcelorMittal, mining giant Xstrata and a consortium of companies from Korea, Japan and Russia which includes Korea Resources Corp, Itochu Corp, Sumitomo Corp, Marubeni Corp, Sojitz Corp, and OAO Russian Railways.
Mongolian Prime Minister Sukhbaatar Batbold said in a statement on Sunday that his government hoped to finalize the first round of negotiations with bidders soon. He hoped to pick the operator of the Taavn Tolgoi mine by end June although it was a flexible deadline. The Prime Minster was speaking to reporters at the World Economic Forum on East Asia.
The Tavan Tolgoi project is said to have six billion tons of coking coal reserves. This being an essential component of steel making there have been a number of interested parties racing for the profits from the mine. Steel is essential as rapid industrialization in Asian nations takes place.