President Ts.Elbegdorj has set an end-of-year deadline to select companies to develop part of TavanTolgoi, seeking to resolve a year-long battle for the resource between groups from five nations. Peabody Energy Corp., OAO Russian Railways, and China’s Shenhua Group are among companies affected by stalled talks to develop the West Tsankhi area of the coal deposit. Elbegdorj has said resolving the impasse will be among the top priorities of the new government.“We will push our government to negotiate with the interested parties within this year,” Elbegdorj said. “The process continues but it cannot continue indefinitely.”
The coal field would become the gest foreign investment project in Mongolia after Rio Tinto Group’s $6-billion OyuTolgoi copper mine. Picking the companies to develop West Tsankhi is also key to the planned $3-billion public offering of the state-run Erdenes TT which holds the rights to the land. Some local politicians want Mongolia to develop West Tsankhi by itself, S.Batbold, who went to the June 28 elections as prime minister, said in an interview in March. “Still we hope” that West Tsankhi will be developed by foreign investors, Elbegdorj said.