Russian offer on coal deposit development beneficial for Mongolia

MOSCOW (Itar-Tass) - Russian President Dmitry Medvedev
believes Russia's offers related to the development of Tavan-Tolgoi, one
of the world's biggest untapped coal deposits in the south of Mongolia,
might be interesting and beneficial to that country.
The Mongolian side has formed a short list of those willing to take
part in the development of the coal deposit, Medvedev said at a news
conference on Tuesday after his talks with his visiting Mongolian
counterpart Tsakhia Elbegdorj.
"I hope the Mongolian government in the immediate future will take a
final decision on who and how will develop the deposit," the Russian
president said.
"We have made our offer and think it very economically balanced and
useful for Mongolia's development and mutually beneficial for the sides,"
he stressed.
The Mongolian side has promised to choose those who will be allowed to
take part in the Tavan-Tolgoi development tender in June or July,
president of Russian Railways Co (RZD) Vladimir Yakunin told journalists.
Yakunin took part in the talks between the two presidents.
"In June-July, a decision will be taken on the tender procedures and a
would-be consortium," he said. In his words, all BRICS (Brazil, Russia,
India, China, and South Africa) are interested in the development of this
coal deposit.
After the Tavan-Tolgoi developer is selected, it will be decided who
will build a railroad to the deposit, Yakunin noted. "If an RZD-led
consortium wins the tender, our company is ready to allocate 1.5 billion
U.S. dollars, and maybe even more, to build infrastructure only," he
stressed.
In his words, the Mongolian side is interested in Russia's
participation in these projects, but it is up to it to decide who will
implement them.
In February 2010, the Mongolian government cancelled an auction for
the sale of a 49-percent stake in the Tavan-Tolgoi project having opted to
keep overall control in its hands. Last June, however, the Mongolian
parliament approved the governmental plan to sell to foreign investors a
30-percent stake in the state-run company Erdenes-Tavan-Tolgoi that will
be responsible for the development of the deposit.
In early 2011, Russia's RZD and SUEK, and a number of Japanese and
South Korean companies set up a consortium to take part in the
Tavan-Tolgoi development tender.
Tavan Tolgoi is estimated to hold up to 6.5 billion tons of coal.