Source: Bloomberg News                  Date: 16 September, 2010

Mongolia will take bids for a contractor to mine Tavan Tolgoi “in early October”, Minister for Minerals and Energy D. Zorigt said in an interview in the Chinese city of Tianjin on Monday. Mongolia wants to retain ownership of new mines including Tavan Tolgoi. Among the companies that have said they are keen to develop Tavan Tolgoi is China Shenhua Energy Co., the biggest Chinese coal producer.

The nation expects to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Mr. Zorigt said, adding, “The government is in the process of appointing an independent board and CEO for the Tavan Tolgoi company.”

Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund USD1.5 billion of initial development cost. The shares will be sold in Mongolia and overseas but Mr. Zorigt said the government has not decided which overseas stock market will handle the sale.