Tavan Tolgoi Agreement to be Exhibited to Parliament

Mongolia may soon launch start of Tavan Tolgoi high-grade thermal coking coal mine.

The government, which has taken 100 percent interest of the project through its wholly-owned Erdenes MGL Company, agreed to submit draft investment agreement of Tavan Tolgoi with potential strategic investors to National Security Council headed by the President Ts.Elbegdorj for recommendations.

The National Security Council, which also consists of Speaker of Parliament D.Demberel and Prime Minister S.Batbold, is expected to discuss the draft investment agreement in the nearest days and release recommendations to set in the agreement.

More than ten international businesses have expressed their interests in developing Tavan Tolgoi project. But the government has yet to name winner which will sign trilateral agreement with Government and Erdenes MGL.

The government intends to speed up signing of the agreement and secure as much participation of local Mongolian businesses as possible, and to make more value added products rather than exporting unprocessed minerals.

In order to sign the investment agreement with 19 chapters and 143 articles, the Parliament need to amend current effective Mineral Law, government spokesperson said.
Those interested parties are as following:

•    A consortium of Vale (Brazil), Jindal Steal and Power (India), and eleven other South Korean companies
•    A consortium of Bazovoy Element (Russia) and Renovo (Russia)
•    A consortium of Peabody Energy (USA) and Shenhua Energy (China)
•    A consortium of Mitsiu (Japan), Itochu (Japan), Marubeni (Japan), and Sumitomo (Japan)
•    Xstrata (Switzerland-Australia)
•    Russian Railway (Russia)
•    Erdos Chinglon Coal (China)

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