Source: MAD-Mongolia, News.mn              Date: August 24, 2011

Japanese and Korean companies may still compete for the right to develop the Western Tsankhi mining site at Tavan Tolgoi. This news comes a month after the Mongolian government's decision to grant 40 percent to China, 24 percent to the USA, and 36 percent to a Mongolian-Russian consortium. The decision was heavily protested by experts and citizens; and called for review by President Ts. Elbegdorj.

“Japanese and Korean operating companies have not been eliminated,” said MP D. Sugar. “When we started negotiations, China and Russia expressed strong interest to us. But the Japanese and Korean operating companies did not offer high technology. They only wanted to buy coal.”

According to the company official, operations for the site are on schedule and the IPO for the site will take place by January 1 2012. He said the government will receive more returns the sooner the Tavan Tolgoi site sells. In addition, claims that the site cannot be divided are unwarranted and only Parliament can address such issues.

According to reports, the government's selection of investors is currently being reviewed by Parliament. The official said he hoped the issue to be resolved this year. Exploration and extraction has already begun at Zuun Tsankhi. He also hinted at the possibility of bids from an Australian-German consortium. Sugar refused to comment on any claims regarding corruption.