Strategic investors for Tavan Tolgoi deposit selected


The three-party consortium of China Shenhua Energy Co Ltd of China, Sumitomo Corporation of Japan, and Energy Resource LLC of Mongolia was announced as the winner of the the tendering to elect investors to cooperate on operating the Tavan Tolgoi deposit, on December 22.
Full operation of the Tavan Tolgoi deposit will be transferred to the consortium, while the license of the deposit will remain wholly owned by the Mongolian government.
The working group in charge of carrying out the tender reported that negotiations to establish a strategic investment agreement with the selected investor will be conducted after the arrival of the new year. In addition to an investment agreement, four to five agreements including agreements on stability, advance fees and establishing railway and infrastructure will be established.
Prior to the establishment of the agreements, the three-party consortium must reach a consensus on the allocation of their investments and establish a joint company.
The consortium will be responsible for exploiting, transporting and selling coal at the deposit; constructing and financing railway between Tavan Tolgoi and Gashun Sukhait border port; paying the remaining 100 million USD debt of Erdenes Tavan Tolgoi JSC to Chinese state-owned company Chalco; and will also be responsible for settling the 1,072 shares in Erdenes Tavan Tolgoi distributed to Mongolian citizens.

Short URL: http://ubpost.mongolnews.mn/?p=12879

Posted by on Dec 24 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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