Mongolia has received nine bids for the mining rights to the Tavan Tolgoi coal mine. The site is estimated to hold 6 billion metric tons of coal.

Media reports on Tuesday said a consortium of Russia’s Deripaska’s energy company EN+ Group and Severstal Resources has submitted a bid. Company officials said the Mongolian government “reacted positively” to the bid when it was received.

Also, China Shenhua Energy Company has bid for the available 49 percent stake in the mine.

Reports say Companhia Vale do Rio Doce, BHP Billiton and Rio Tinto also entered the competitive bidding.

Dow Jones News reports that Robert Lepsoe, a Hong Kong-based adviser to the Mongolian government, said discussions for mining rights are currently underway with a number of companies, though he declined to name them. The Mongolian government has hired Deutsche Bank AG (DB) and J.P. Morgan Chase & Co. (JPM) to privatize the coal mine, he said.

“The initial plan is for the mine to sell thermal and coking coal, but the government intends to eventually build power plants so that power can be exported to China,” Lepsoe said.
Report says cabinet approves $211 million bond sale

The Mongolian cabinet has approved plans to sell $211 million in government bonds.

Officials said revenues from the bond sale would be used to fund the state budget, which is expecting a shortfall this year.

The first stage of the sale anticipates an initial $42 million being sold by the Bank of Mongolia. The bonds will be made available to the public as well as other banks and financial organizations.

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