• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 56 mins Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 9 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 9 hours Why I Think Natural Gas is the Logical Future of Energy
  • 9 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 1 hour Get on Those Bicycles to Save the World
  • 8 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 5 hours Iraq war and Possible Lies
  • 1 day Satellite Moons to Replace Streetlamps?!
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 day Can “Renewables” Dent the World’s need for Electricity?
  • 15 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 2 hours EU to Splash Billions on Battery Factories
  • 19 hours Can the World Survive without Saudi Oil?
Oil Market Loses Its Bullish Edge

Oil Market Loses Its Bullish Edge

Bullish sentiment has dominated oil…

Mongolia to Begin Production at Giant Tavan Tolgoi Mine

Foreign coal mining companies have been given encouraging news as an announcement was made that Mongolia’s state run coal company will begin to produce coal from a block of the country’s giant Tavan Tolgoi mine. The new production from the mine may open up the way for foreign firms, such as Peabody Energy from the US and Shenhua Group of China, to become a part of the long-delayed 7.5 billion tonne project.

Batdorj Enkhbat, the CFO of Erdenes-Tavan Tolgoi (E-TT), the company that is in charge of the mine, has stated that coal extraction will begin at the western Tsankhi block by April, although he could not say whether foreign partners would be accepted, stating that, “we don't yet know the answer to the question.”

The mine, situated near to the Chinese border, has been delayed repeatedly due to multiple financing problems, bureaucratic hold-ups, and political opposition to initial plans to the inclusion of foreign investors.

Related article: New System to Produce Energy from Coal Releases 99% Less CO2

Two years ago in 2011 both Peabody and Shenhua were named as part of a consortium that was given the rights to develop the western block of Tavan Tolgoi, but the government had to rescind its offer after bidders from Japan and South Korea complained that the decision was unfair.

The fates have smiled on Peabody once more as last year it was asked to draw up logistic and infrastructure plans for the block with a view to becoming the contractor for the mine ahead of a new bidding auction. Then last month it was offered an official contract by E-TT, although it has yet to decide whether or not to accept.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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