Thousands of Local Businesses Unite to Work at Tavan Tolgoi

More than a thousand local Mongolian businesses have joined Mongol 999, a national consortium established last week in a hope to win Tavan Tolgoi coal mine project, opposed to currently aligned world coal mining giants that includes Peabody.

“Charity begins at home”, as the popular saying goes in Mongolian language, we should be helping Mongolians first, rather than helping foreigners to raise capital at the global stock markets by pledging our mineral wealth, local press have voiced their support by making the news centerpiece stories. “We [Mongolia] can do whatever other nations do. We will develop the project, and all earnings will remain in Mongolia,” told L.Ariunbold, Director General of Mongol Bazaltwool LLC, who initiated the project, which is widely applauded by public.

Any business wants to join the consortium is required to “contribute” a minimum of MNT1 million to the consortium, which hopes to fulfill the government’s initial requirement of getting US$0.5-2.0 billion in advance from a winner.

The Parliament ordered the government last month to submit draft investment agreement to be signed with potential investor and speed up the launch of the project within this year.

The government is trying to secure as much participation of local Mongolian companies as possible in the development of the project and to make more value added products rather than exporting unprocessed minerals abroad.

Current interested parties are as following:
• A consortium of Vale (Brazil), Jindal Steal and Power (India), and eleven other South Korean companies
• A consortium of Bazovoy Element (Russia) and Renovo (Russia)
• A consortium of Peabody Energy (USA) and Shenhua Energy (China)
• A consortium of Mitsiu (Japan), Itochu (Japan), Marubeni (Japan), and Sumitomo (Japan)
• Xstrata (Switzerland-Australia)
• Russian Railway (Russia)
• Erdos Chinglon Coal (China)
source: http://ubpost.mongolnews.mn