Energy Resources LLC
aims to raise between USD800 million and USD1 billion in a Hong Kong initial
public offering by as early as September, according to unidentified but
dependable sources who spoke to Reuters. The Mongolian coking coal company,
whose Ukhaa Khudag mine is roughly 245 km from the Chinese border, will be the
first company listed in Hong Kong to be fully based and operated in Mongolia.
The offering would be sponsored by Citigroup and JP Morgan, the sources said.

Mongolia”s domestic companies are seeking foreign capital to help them expand,
and the government is trying to connect local companies and its stock market
with the rest of Asia — from Hong Kong to Korea to Japan — hoping to turn
domestic franchises into regional ones. Earlier this year, media reports said
Energy Resources was seeking either a London or a Hong Kong IPO.

The company”s peers in Hong Kong — Mongolian Energy
Corp and SouthGobi Energy
Resources —
operate mines in Mongolia but are headquartered offshore in Hong Kong and
Canada, respectively. Hong Kong has long been a natural destination for
emerging Mongolian champions, given its diversified investor base, proximity to
mainland China, and China”s hunger for Mongolia”s copper, iron ore, gold and
coal.