• 3 minutes CoV-19: China, WHO, myth vs fact
  • 6 minutes Trump reinvented tariffs and it worked
  • 9 minutes IEA Sees First Global Oil Demand Drop in a Decade on Coronavirus
  • 12 minutes Question: Why are oil futures so low through 2020?
  • 2 days "For the Public's Interest"
  • 59 mins Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 1 hour Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 16 hours Natural Gas from Cow Poop Used to Save the Environment and Help Farmers
  • 1 day Coronovairus, Phase One Agreement, Lower for Longer
  • 20 mins The New Class War Exposes the Oligarchs and Enablers
  • 1 hour Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 1 day Weekly U.S. Imports of Crude Oil. No, the U.S. is NOT oil & gas self-sufficient.
  • 11 hours Has Trump put the USA at the service of Israel?
  • 15 hours Is cheaper plastics feedstock on the horizon?
  • 2 days Cheap natural gas is making it very hard to go green
  • 9 hours Solar Cells at 25 Cents Apiece (5 cents per watt)

China Moves to Acquire Stake in Mongolia’s Biggest Coal Project

China Moves to Acquire Stake in Mongolia’s Biggest Coal Project

Mongolia has historically remained within Russia’s sphere of influence, except for it southern regions, now incorporated into the People’s Republic of China as “Inner Mongolia.”

Now Beijing’s cash is allowing it to enter the Mongolian market, as a joint venture including China’s Shenhua Energy Co moves to acquire a 40 percent stake in the western Tsankhi block of Mongolia's Tavan Tolgoi coal project, which would give Shenhua the biggest share of one of the world's biggest coking coal deposits.

In a historic reversal of influence in Mongolia between Russia and China, the Mongolian government released a statement noting that after the 40 percent Shenhua share, a Russian-led consortium would control 36 percent of the project and U.S. mining concern Peabody Energy Corp. would own the remaining 24 percent, according to a draft proposal to be submitted to the Mongolian parliament, the Shanghai Daily reported.

UOB-Kay Hian senior commodities analyst in Hong Kong Helen Lau stated, "This is a big win for Shenhua and will give a significant boost to its long-term growth prospects."

While analysts believe that the Tavan Tolgoi project may require an initial investment of more than $7 billion before it begins production, it is seen as an integral component to upgrading the nation's economy.

By. Joao Peixe, Deputy Editor OilPrice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News