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Reports say China has its eye on rights to Tavan Tolgoi coal |
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Wednesday, 10 October 2007 |
 China’s largest coal producer,
China Shenhua Energy Corp, may purchase the rights to additional Mongolian
coal mines.
Shenhua has announced it intends
to increase its coal production by at least 15 million tons each year,
until it reaches an annual output of 200 million tons by 2010.
Shenhua is expected to
consolidate additional Chinese holdings as well as seek Mongolian and
other foreign coal sites. Chairman Chen Biting said in a statement,
"We want to carefully and selectively buy foreign assets, focusing
on assets that have potential and fit with the company".
Shenhua is among a number of
multi-national firms interested in purchasing the rights to the massive
high-quality coking coal deposit at Tavan Tolgoi in Mongolia's south
Gobi area. "If we acquire this project, we can use our existing
railway and also diversify our product mix," the source told Reuters.
"We've been working on
this project for more than four years. During this period, every time
we reached a conclusion, the government changed. So we had to re-start
the negotiations."
Regarding the amount of money
needed to develop the Tavan Tolgoi site, the Chinese source said,
"First of all we have to finalize the negotiations, then it would
be time for investment. I don't think money is the problem."
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