Bloomberg: Mongolia’s Tavan Tolgoi Coal Stalled as Politics Overtake Mining

Mongolia’s plans to develop part of the Tavan Tolgoi coal deposit, one of the world’s largest sources of the fuel, have stalled amid political jousting ahead of June parliamentary elections. Progress on talks with companies including Peabody Energy Corp. (BTU), OAO Russian Railways (RZHD), and China’s Shenhua Group to develop the West Tsankhi part of Tavan Tolgoi have “stopped,” Prime Minister Sukhbaatar Batbold said. The $3 billion initial public offering of state-run Erdenes Tavan Tolgoi, which is developing the East Tsankhi part of the 6-billion-metric-ton field, was delayed yesterday as some politicians call for Mongolia to develop West Tsankhi itself. “This is a democracy and there should be different opinions,” Batbold said in an interview in Ulan Bator, Mongolia’s capital, without saying which he supported. He backed Rio Tinto Group (RIO) last year against a group of 20 lawmakers who demanded that Mongolia get a bigger stake in the company’s Oyu Tolgoi copper project. To read the full article and view the video, click hereMongolia’s Tavan Tolgoi Coal Stalled as Politics Overtake Mining

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