Source: NASDAQ                             Date: 21 September, 2011

The Mongolian National Security Council officially rejected the proposal to divide Tavan Tolgoi's western block between China USA, and Russia. The draft will be revised and resubmitted at a later date, reported the source.In July, Mongolia decided to divide Western Tsankhi between China's Shenhua with a 40 percent stake, the United States's Peabody Energy with 24 percent, and a Russian-Mongolian consortium with 36 percent. Delays have arisen because there has been no final decision where to list the IPO and who to grant development rights to. The Mongolian government would like to list the state-owned Erdenes Tavan Tolgoi on the Mongolian Stock Exchange (MSE), but the IPO is potentially worth USD 2 billion to USD 3 billion, twice as much as the MSE's total market capital (USD 1.6 billion).Although the London Stock Exchange (LSE) has agreed to update the MSE with its Millennium software to allow for electronic trading, it has not yet been installed and so could not handle the daily trading volume.
The government is considering listing Erdenes Tavan Tolgoi on both the Hong Kong and London market it addition to Ulaanbaatar, which would increase the stock value.The distribution of the site is important to Mongolia's foreign policy. Mongolia must keep fair relations with its neighbors China and Russia, but it cannot sacrifice its relations with Japan, South Korea, or the USA either. Both Japan and South Korea were very unhappy to be left out. Also, the resultant 40 percent to China left 18 percent to Russia, which upset Russia as well.