It is widely believed that Tavan Tolgoi might yield more benefits than even Oyu Tolgoi’s larger copper project when it`s development is finished.

According to a study by the Economics School of the National University of Mongolia, Tavan Tolgoi potentially can produce 10 million tons of coking coal and 40 million tons of fuel coal a year. Experts say that State owned Erdenes Tavan Tolgoi LLC will play a big role in its development.

However, the growing Mongolian economy has been hit by a slowing of the Chinese economy and a decrease of steel production therefore Mongolians see Tavan Tolgoi as a promising hope.

Erdenes Tavan Tolgoi has started operations in East Tsankhi in Tavan Tolgoi while surface soil removal is planned for 2013.

The newly appointed CEO of Erdenes Tavan Tolgoi LLC will not hesitate to move on with development until the debt of 350 million US dollars to Chinese state owned Chalco is paid. According to an official source Erdens Tavan Tolgoi seeks a way to negotiate on a coking coal deal with Shenhua or other buyers in different countries.
Ya.Batsuuri, CEO of Erdenes Tavan Tolgoi said “We were in a much better condition until the company distributed free allowance to Mongolians via the Human Development Fund. Erdenes Tavan Tolgoi could have increased the production and started on the infrastructure projects.  The 350 million US dollars which Erdenes Tavan Tolgoi took from Chalco as a loan was spent for the election. We should fix this condition as soon as possible. And we can see how to do this.”