Chinese firms bid for world's largest coking coal mine
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Mongolia will exploit the world's largest Tavan Tolgoi coking coal mine this year, and Chinese miners including Shenhua Group are competing for the rights against miners from other countries, including the US, Japan, and Australia.
"Once the exploitation starts, Mongolia's GDP may double," Huang Teng, an expert in international coal trade, told 21st Century Business Herald on Tuesday. "Hence Mongolia is quite prudent in selecting partner miners."
Up to 49 percent of all shares in Tavan Tolgoi, reserving 6.4 billion tons of coking coal, could be transferred to foreign partners, and Mogolia will have more than 50 percent of the rights, according to Mongolian legislation, 21st Century Business Herald reported today.
China's Shenhua Group Corp and Erdos Chenglong Coal Corp, along with miners from the US, Japan, Russia, Australia, Brasil, Korea, and India have delivered their exploitation plans.
Rio Tinto and BHP Billiton are also among the bidders, but "they would propose plans later, or media did not report," according to sources in the coal industry.
The exploitation project and its most sensitive documents were discussed on April 21, and submitted for review by the Mongolian government. The government earlier employed Deutsch Bank and Morgan Stanley as consultants.
"Shenhua Group is the most competitive bidder," said Ling Wen, president of Shenhua Group.
Shenhua Group has started construction on a railway from Ganqimaodao port to Wanshuiquan in Baotou city in Inner Mongolia autonomous region in 2009. The railway, expected to start operating in 2011, could be an alternative route to to reach Tavan Tolgoi coking coal mine.
"Chinese miners should follow Yanzhou Coal example in acquiring Australian mines, to fully consider local residents' benefits," Huang stressed.
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