Head of the Prime Minister’s Office and Minister of Mongolia Ch.Khurelbaatar told MPs P.Altangerel, S.Byambatsogt, D.Gankhuyag and G.Zandanshatar on Friday that the Tavantolgoi deposit contains 6.42 billion tons of coal. About 28 percent or 1.8 billion tons of this can be coked. The four MPs had submitted some questions on Tavantolgoi to the Prime Minister.

Nine production licenses covering 71,754 acres of the deposit have been issued. Energy Resource LLC owns five exploration licenses covering 70,569 acres. The MPs had wanted to know why the deposit was not registered as a national asset since it had been explored with money from the state budget.

Speaking in the absence of the Prime Minister, Khurelbaatar said Tavantolgoi LC began work in 1967 and mined 9.8 million tons of coal until September 2009. The output was used locally until exports started in 2005. Energy Resource began mining in April 2009 and
has so far produced 1,800 tons. Erdenes MGL and Daitsuki have not mined anything.

N.Ganbyamba said state property is being exploited by private companies because the regulations are vague and not strong enough. “Robert Friedland is making money from state property. License holders also own the underground water. Will this system continue as it is?” he asked.

Khurelbaatar said the Government will formulate a special policy on this.

Kh.Badelkhan wondered why China buys Tavantolgoi coal at the same price as coal produced in its Shanxi province. A representative of the Ministry for Minerals and Energy clarified that there is no fixed global price for coal. At present the Tavantolgoi coal is sold for USD 50 per ton and the price is fixed every month, he said.

D.Gankhuyag said MNT 37 billion of state money had been spent on exploration in Tavantolgoi, and MNT400 billion in Oyutolgoi.