The Mongolian parliament approved the sale of up to 30% of the Tavan Tolgoi coal property through a partial IPO of state-owned Erdenes Tavan Tolgoi LLC, Bloomberg News reported June 29.
The legislation instructed Prime Minister Khurelsukh Ukhnaa to take “urgent measures” for the development of a railway and roads related to the project. The resolution also called for the construction of a power plant at the site.
Mining Minister Sumiyabazar Dolgorsuren recently presented a bill to parliament proposing the stake sale in local and foreign stock markets as well as a plan to expedite a US$1 billion coal-fired power plant near the mine and a 247-kilometer railway.
Tavan Tolgoi is estimated to host about 6.4 billion tonnes of reserves and is considered one of Mongolia’s flagship mining projects.
Mongolia has considered various options for the asset, including a US$15 billion IPO and a triple listing in London, Hong Kong and Ulaanbaatar, Mongolia. The government has also made unsuccessful attempts to forge international partnerships for the development.
