Following four months of negotiations, the consortium consisting of Mongolian Mining, China’s Shenhua Energy and Japan’s Sumitomo have agreed with government to invest $4bn in the project and were due to sign the agreement for the same this week, according to Reuters.
Prime Minister Chimed Saikhanbileg said that the Mongolia Government is in the final stages of signing a deal.
Under the deal, the management of Erdenes Tavan Tolgoi coal mine will be moved to China’s Shenhua Energy, Japan’s Sumitomo and Mongolian Mining subsidiary Energy Resources.
Located around 240km north of the Chinese border, Tavan Tolgoi has mine 7.4 billion tons of coal reserves and is divided into six sections which include Tsankhi, Ukhaa Khudag, Bor tolgoi, Borteeg and south-west and eastern coalfields.
Recently, Mongolia has given ‘in principle’ approval for the second phase of Rio Tinto’s copper and gold mine Oyu Tolgoi, which will result in a $4.2bn investment in the country.
