Russia's En+Group, Renova want to develop Mongolian coal deposit – govt
July 21 (RIA Novosti) Russian Transport Minister Igor Levitin confirmed on Wednesday that the Russian companies En+Group and Renova Group are interested in developing Mongolia's Tavan-Tolgoi deposit, together with Russian Railways (RZhD).
The Mongolian government wants to privatize Erdenes-Tavantolgoi company, the Tavan-Tolgoi developer, by selling 30 percent to foreign investors (Mogi: Actually it is up to 30% that will be IPO-ed), 10 percent to households (Mogi: 10% is to be distributed to citizens for free actually) and a further 10 percent to Mongolian businessmen at a nominal value. Half of the shares will stay with the government.
In 2009, the Mongolian government transferred 50 percent of Ulan-Bator Railway (UBR) shares to RZhD for a five-year trust management. UBR's priority project is the construction of a 1,100 kilometer railway link between Tavan-Tolgoi and the Russian border.
Levitin said that the railroad would help transfer coal from the deposit to Russia's sea ports in the Far East.