Mongolia Holds up Deal with Foreign Firms over Massive Coal Mine

Reuters reported that Mongolia’s parliament has halted a landmark deal with foreign firms to develop the giant Tavan Tolgoi coal mine near the Chinese border, citing the need for approval of legislators before going ahead.

As quoted in the market news,

A series of delays at major mining projects such as Tavan Tolgoi and the Oyu Tolgoi copper mine run by Rio Tinto have taken a toll on Mongolia’s tiny economy, with foreign investment slipping 74 percent last year.

The government asked a consortium consisting of the Mongolian Mining Corp, China’s Shenhua Energy and Japan’s Sumitomo Corp to invest $4 billion in the project and had hoped to sign off on it this week following four months of negotiations.

Click here for the full Reuters report