Mongolia’s new government
is considering rejecting all bids for the massive Tavan Tolgoi coal
mine and allowing the government to operate the site.
Tavan Tolgoi is the second
largest mining investment in Mongolia, following the Oyu Tolgoi copper
mine. Initial estimates have indicated Tavan Tolgoi will produce 30
million tons of coal annually for the next 30 years.
Newly elected Mongolian Prime
Minister Sanj Bayar has proposed new laws to allow the government to
take control of the Tavan Tolgoi deposit, N. Algaa, the executive director
of the Mongolian National Mining Association, has told Bloomberg News.
Additionally, the government
has begun discussions with the site’s current developer, Energy Resources
of Mongolia, regarding moves by the government.
"The new prime minister,
Bayar, has made a proposal to Energy Resources," Algaa said Thursday.
"His proposal is that
the government takes 100 percent ownership of Tavan Tolgoi, but it will
be done through negotiations."
Mongolia’s take-over, if
enacted, would sideline BHP Billiton, Peabody Energy and China Shenhua
Energy which had sought to operate the Tavan Tolgoi site.
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