The Tavan Tolgoi coal project is facing financial difficulties and an initial public offering for the mine originally scheduled for this year will not go ahead, its chief executive has said. Ya. Batsuuri said the government was going to provide assistance to help the company pay its debts. “We asked for $500 million to bail out our debts and finance our operations before we start our infrastructure, wash plant and water-supply project. The prime minister said the government is going to provide us $350 million. It’s very timely, important financial assistance.”
Mongolia was planning to list the eastern Tsankhi section of the mine on foreign stock markets this year, but Batsuuri said such plans were now suspended. “Not this year,” he said. “We decided to wait until the market recovers, the price of coal increases, and until E-TT starts regular construction of its wash plant. Plus we need to increase our exports.” Exports to customers including Chalco stopped on January 11 as cash-strapped Erdenes-TT could not pay Altangovi, a logistics provider, according to Batsuuri. Last year, Batsuuri’s predecessor complained publicly that a government decision to make the company pay $669 million into the country’s Human Development Fund had held back progress on the mine.