Mongolia allows Chinese, U.S. firms to develop key coal deposit

Mongolia has selected Chinese and U.S. firms as partners in jointly developing its lucrative Tavan Tolgoi coal deposit.

This was announced by the Mongolian government.

According to a draft agreement, China Shenhua Group, U.S. mining giant Peabody and a Russia-led consortium have gained permission to develop the western Tsankhi block of the Tavan Tolgoi coal deposit in Mongolia's southwestern Omnogovi province.

Shenhua and Peabody will respectively own 40 percent and 24 percent of shares of the project. But a final decision will be made during a parliamentary meeting scheduled next Monday.

The Tsankhi block of the Tavan Tolgoi coal deposit contains an estimated reserve of 1.2 billion tons -- mostly coking coal used for steelmaking. The deposit could produce 15 million tons of coal annually for more than 30 years. 

The full story is available at Xinhuanet.