Dec 3 (Reuters) – Mongolia has relaunched an international tender to develop its giant Tavan Tolgoi coal project as it tries to boost a flagging economy hit by falling commodity prices and a decline in foreign investment.
The latest attempt has drawn interest from Hong-Kong listed Mongolia Mining Corp (MMC), U.S.-based Peabody Energy Corp and Japan’s Itochu Corp, despite weak global coal prices.
Tavan Tolgoi holds around 7.5 billion tonnes of coking coal, but Mongolia’s cash-strapped government has struggled to finance its development, and little progress has been made since an international bidding process collapsed in 2011.
The Mongolian Mining Corp (MMC) said on Monday that it has formed a consortium with “certain independent parties” to submit a bid for the project, located around 300 kilometres (186 miles) from the Chinese border.
Interested firms had to notify the Mongolian government of their intention to bid for the block before a Dec. 1 deadline, with a shortlist expected to be released by Dec. 15, MMC said.
The firm declined to give further details of its bid, when contacted by Reuters. Erdenes Tavan Tolgoi, the state-owned entity in charge of the project, did not immediately respond to requests for comment.
In 2011, the western block of the project was awarded to a consortium consisting of Peabody, a team of Russian and Mongolian firms, and the Shenhua Group, China’s biggest coal producer, but the result was annulled after rival bidders from Japan and South Korea branded the decision unfair.
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