Erdenes Tavan Tolgoi to Start Mining Mongolia’s West Tsankhi

Bloomberg reported that this year, Erdenes Tavan Tolgoi LLC will start mining the West Tsankhi coal area, located in Mongolia, in order to get out of debt and pay off Aluminum Corporation of China Ltd. (NYSE:ACH).

As quoted in the market news:

The move marks a turnaround in Mongolia’s policy two years after the nation named China’s Shenhua Group, OAO Russian Railways, and Peabody Energy Corp. (BTU) of the U.S. among companies due to develop West Tsankhi, which is part of the 6.4 billion ton Tavan Tolgoi coal basin. Companies from Japan and South Korea also bid to help develop West Tsankhi.

“Many parties could not find a common language, that’s why the consortium didn’t work,” Batsuuri said, referring to initial plans for the foreign companies to work together as a group. “Just in order to increase our output and get over our current financial problems” Erdenes TT will begin to mine West Tsankhi by itself, he said.

Click here to read the full Bloomberg report.