China Shenhua Energy and partners, including Energy Resources and Japan's Sumitomo, have been selected to develop the metallurgical-coal deposits at Tavan Tolgoi project in Mongolia.

Tavan Tolgoi

The trio have won the bid over US-based mining firm Peabody Energy.

The Tavan Tolgoi project is said to be the largest-of-its-kind coking and thermal coal deposits in the Ömnögovi Province. It has around 7.4 billion tons of coking coal reserves.

The mine has six segments, including Tsankhi, Ukhaa Khudag, Bor tolgoi, Borteeg and south-west and eastern coalfields.

Development of the mine was stopped after the government cancelled the award to a partnership between Peabody, China Shenhua and Russian Railways in 2011, reported Bloomberg.

Under the latest award, China Shenhua Energy and partners should produce around 30 million tons of coal each year at Tavan Tolgoi, and export it to at least two markets.

The Mongolian government will have full ownership of the mine.

Image: Tavan Tolgoi project is a coking and thermal coal deposits in the Ömnögovi Province. Photo: courtesy of Brücke-Osteuropa.