Mongolia can build a power plant at its Tavan Tolgoi coal mine by 2021 to supply the Oyu Tolgoi copper project, energy officials said on Tuesday.  Energy Minister  Ts.Davaasuren explained that a cooperation agreement with a company called South Gobi Energy had been cancelled, but a plant at the Tavan Tolgoi coal mine was still in development. The minister said that Oyu Tolgoi had the responsibility to fully solve all the energy demands for the mine using Mongolian supply within four years. D. Batbileg, director of the Tavantolgoi Power Plant Project, addressing the same news conference said construction work was “ready to begin”.

Last week, Rio Tinto said it was working with its partners to find a solution after the government announced the cancellation of a contract, which Rio interpreted as meaning the Tavan Tolgoi power project was no longer viable.

The mine is jointly owned by the government of Mongolia, with 34 percent, and Turquoise Hill Resources with 66 percent. Turquoise Hill is in turn 51 percent-owned by Rio Tinto.

Tensions over tax and benefits to the country held up an expansion project for underground mining to tap into most of the resource in 2013. Construction resumed after May 2015, when the parties signed a new agreement.