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Print[Ferro-Alloys.com] The state-owned developer of the huge but remote Tavan Tolgoi coal deposit in Mongolia has invited U.S. miner Peabody Energy to help build infrastructure at the project ahead of a much-delayed bidding process, a senior company official said.
State-owned miner Erdenes Tavan Tolgoi Ltd (ETT), which holds the licences for the coal-rich Tavan Tolgoi area in the South Gobi desert, has asked the U.S. firm to draw up logistic and infrastructure plans for the project's western Tsankhi block, its chief operating officer Graeme Hancock told Reuters on Friday.
Industry pundits said the move puts Peabody in a strong position with the government, leading to speculation that it could get a bigger slice of the prized asset under a new bidding process than it was allotted under a previous deal that was scrapped amid criticism it was unfair.
The plan is to design infrastructure at West Tsankhi that can also be used at the east Tsankhi Block owned by ETT. Perth-based Macmahon Holdings and Germany's Operta are currently mining the east block under a five-year, USD500 million contracts. Total coal reserves in east and west Tavan Tolgoi are estimated at 6.4 billion tonnes, one of the world's largest.
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