Among issues discussed yesterday at the Cabinet meeting, Advisor to the Prime Minister Ts.Munkhtur was called on to report on the progress of discussions with the selected Tavan Tolgoi investor for development of the mine.

Ts.Munkhtur noted, "Tavan Tolgoi is one of the largest undeveloped coking coal deposits in the world. According to international statistical data, there is one hundred billion tons of coking coal in deposits around the world, of which the coal reserves of Mongolia is only 2 percent, which is not a large amount.

"According to the reserves of coal, China, Russia, Australia, and India are leading countries in coal extraction. Among them, Mongolia is in 15th place."

Australia has mining infrastructure with the capacity to transport and transmit up to 150 million tons of coal, plus they are expanding their railway transportation and seaports, making them an even stronger competitor in the market.  

Russia for example has recently made a huge investment in its mining industry in order to trade 2.2 billion tons of coal. The coal industry is also advancing in Mozambique, Indonesia, and Kazakhstan.

Analysts say these factors warning signs to accelerate policy on bringing Mongolian coal to the global market, otherwise, Mongolia could lose its current standing.  In terms of domestic factors, progress is required to recover and stimulate the economy.

Ts.Munkhtur reported that presently, the agreement with the three-party consortium, selected for Tavan Tolgoi investment under the governance of previous government is still ongoing.   

From the consortium's side, the following requirements have been put forward: to decide on the issue of an investment of 4 billion MNT; to make payments for previous contact work which has been completed; to build a coal processing factory with a capacity to produce 30 tons of coal; the provision of a 150 million USD loan; and to resolve infrastructure issues including railway.