Mongolia is still open to foreign investments in the western block of the
giant Tavan Tolgoi coal mine and has not yet decided on whether to go alone on
development its prized asset, President Tsakhia Elbegdorj said to Reuter in an
interview on Thursday.

Talks with foreign groups to develop Tavan Tolgoi have hit a snag since July
last year after the government withdrew a decision to hand mining rights to a
consortium comprising China’s Shenhua Group, U.S.-based Peabody and a Russian-Mongolian
group headed by Russian railways.

An executive with the state-owned firm in charge of the Tavan Tolgoi project
said in April that Mongolia might develop the mine on its own.

“I think in balancing investors, it is essential that it is in line with
policies and line with our national security,” Elbegdorj told Reuters.

“We have two big neighbors and we need investment. I think the door is still
open in the negotiations with big national investors.”

Speaking at his office in Mongolia’s Government House, Elbegdorj also said
it was crucial for the country’s tiny economy to diversify away from mining.

The government will boost foreign investment in other sectors such as
agriculture, food and tourism, he said.

“The Mongolian economy mostly has one color, and we would like to make this
rainbow economy. I have a message to our investors- don’t see Mongolia as only
mines. There are great opportunities in investing in other sectors.”

Mongolia’s $10 billion economy is at the beginning of a mining boom and
foreign investors have rushed in on hopes of cashing in on the country’s huge
deposits of copper, gold, coal and uranium.

Elbegdorj said the biggest challenge for the next government was fight against
corruption.

He said the recent arrest on corruption charges of his predecessor, Nambaryn
Enkhbayar, should be welcomed by foreign investors because it proved that
Mongolia was comittes to improving the rule of law.