Monday, March 07,
Arcelor Mittal ,Vale and Xstrata are top three bidders shortlisted among six preferred bidders picked to develop Mongolia’s Tavan Tolgoi mine, in a move that could grant the mining giants access to the world’s biggest untapped coking coal deposit.*
U.S. coal miner Peabody , a consortium of China’s Shenhua and Japan’s Mitsui & Co , and a separate consortium of Japanese, South Korean and Russian companies are the other preferred bidders to develop the west Tsankhi block of the mine, Erdenes MGL, the Mongolian government entity which controls Tavan Tolgoi, said on Monday.
Tavan Tolgoi has estimated reserves of 6 billion tonnes of coal, including the world’s largest untapped deposit of coking coal, used by steel makers.
Strong demand for coking coal from big Asian buyers including China, Japan and South Korea has pushed prices to near record highs this year.
Tavan Tolgoi, located in Mongolia’s south Gobi region, consists of six coal fields and Tsankhi is the main one, containing most of its coking coal resources.
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