US mining giant Peabody
Energy has confirmed to AFP that it is one of the firms chosen to help develop
Mongolia”s huge Tavantolgoi coal deposit, amid uncertainty over which firms
have been selected. The Mongolian government said earlier this week it had
picked Peabody, China”s Shenhua and a Russian-led consortium, but reports have
since emerged saying that the deal is still under negotiation.

“The government of
Mongolia has selected Peabody to be part of a global energy consortium to
develop the Tavantolgoi coking coal reserve,” Peabody said in what
appeared to be the first confirmation of involvement in the project by a firm. “Peabody
continues to work with the government and other parties to reach agreement on
definitive terms and conditions.”

According to the statement
issued by the Mongolian government on Monday, Shenhua is to have a 40 percent
share and Peabody 24 percent, while the remaining 36 percent is to be held by
the Russian-led consortium. But it made no mention of Japan”s Mitsui and South
Korea”s Korea Resources Co. — originally on the shortlist of six preferred
bidders to develop Tavantolgoi, the world”s largest coal deposit.

On Wednesday, B. Enebish,
head of the parent firm of state-owned Erdenes Tavantolgoi (ETT) — set up to
manage Mongolia”s coal mining interests — told Dow Jones Newswires
negotiations were still on and “nothing is finalized.”

A Mitsui official told AFP
earlier that the Japanese firm still planned to work with Shenhua on the
project but had not yet received Mongolia”s official decision. Spokesmen for
Korean companies Korea Resources and POSCO have said they had only seen news
reports on the deal and did not know if they were part of a consortium to
develop the deposit.