Source: Bloomberg                              Date: 10 March, 2011

Identifying the six groups shortlisted to develop part of the Tavan Tolgoi deposit, Mr. B. Enebish, head of the state- run Erdenes MGL LLC which owns the asset, said on March 5, “This is only the start. Mongolia would like to be one of the main commodity suppliers in Asia.”

Coal output doubled to 25 million metric tons to become Mongolia’s top export last year, encouraging the government to speed up Tavan Tolgoi’s development after years of debate. The mining industry can help fund broader economic growth, which may hit 10 percent this year, Prime Minister S. Batbold has said. That would exceed China’s targeted 8 percent for 2011.

Mongolia attracted 15 initial bids to develop the field. The tender winner will pay Erdenes Tavan Tolgoi royalties for mining and assist in getting the coal to ports in China and Russia for export to Japan and South Korea, among other countries, Mr. Enebish said. Output, marketing, and transport plans will be discussed with the shortlisted bidders. “Mongolia is still an under explored country,” Mr. Enebish said. “We’d like to see Erdenes Tavan Tolgoi in five or 10 years as one of the biggest coking coal mining companies.”