HomeProduct Complimentary download Talks over Tavan Tolgoi yet to complete, Mongolian official

Talks over Tavan Tolgoi yet to complete, Mongolian official

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Publish time: 12th March, 2015      Source: www.cnchemicals.com
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The Mongolian government is yet to complete talks over the takeover of the landlocked country’s largest coal mine deposit Tavan Tolgoi by a consortium led by China's Shenhua Energy, Reuters reported on March 12.Negotiations with Shenhua, which were due to be completed before Mongolia's lunar new year in February, have already missed the deadline, the report cited Mongolian Minister Mendsaikhan Enkhsaikhan, who oversees Tavan Tolgoi and other giant mining projects, as saying.The project, located in Mongolia’s southern Gobi region, is still paying off debts to China's Chalco Group, from which the project operator Erdenes Tavan Tolgoi borrowed $350 million from Chalco in 2011.Erdenes Tavan Tolgoi agreed to pay back the debt in the form of coal deliveries from its East Tsankhi block, with about $150 million yet to be paid.After the repayment of outstanding loans to Chalco, Erdenes Tavan Tolgoi still has an obligation to sell 80% of its coal (to Chalco) from the East Tsankhi mine for five years, said Enkhbaatar Myagmarulzii, a project manager working under the minister.Mongolia has set up a working group to lead negotiations with the consortium, which will be entrusted with developing and managing both the East and West Tsankhi blocks, which hold a combined 1.8 billion tonnes of coking coal.Erdenes Tavan Tolgoi is also still in dispute with MacMahon Holdings, which was contracted to develop the mine's east block. MacMahon claims it is owed about $30 million.