Mar. 9 – Seven bidders, including Arcelor Mittal, Vale, Xstrata, Peabody, Shenhua and Mitsui, plus a Japanese, Korean and Russian consortium have been shortlisted to develop Mongolia’s massive Tavan Tolgoi reserves.
The site, owned by Mongolia’s state-owned Erdenes, has 6 billion tons of coal reserves and is capable of producing 15 million tons annually for over 30 years. The site is expected to require an initial US$7.3 billion investment to get it ready for development. A separate IPO is also being planned for the mine, with estimates this could raise at least US$15 billion.
The Tavan Tolgoi site is in the Gobi Desert, about 540 kilometers south of Mongolia’s capital of Ulaan Baatar. The winning bid is expected to be announced on June 30, 2011.
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