Mongolia”s coal sector could
kill Australia”s, global mining figure and Canadian billionaire Robert
Friedland says. Friedland, who chairs Ivanhoe Mines, said “Mongolia could kill
Australian coal” because its mining tax was lower than in Australia. Ivanhoe
Mines” 79 per cent-owned coal company South Gobi Energy Resources Ltd is the
largest coal producer in Mongolia in terms of export sales.

The tax on mining profits in
Mongolia was 25 per cent compared to Australia”s proposed 30 per cent mining
tax, Friedland said. Mongolia has another clear advantage in that it neighbours
its Chinese customers. “They”re closer to China than your lucky island,”
Friedland told a mining conference in Western Australia on Wednesday.

He said the Oyu Tolgoi gold
and copper mining joint venture between Ivanhoe Mines and Rio Tinto contained
at least USD1 trillion worth of ore and the project was on track to become one
of the world”s top three copper gold mines. It  could easily have a mine life of 59 years,
Friedland said. Rio Tinto believes it could be producing for 100 years, and
first production is slated in 2013.

Friedland said Oyu Tolgoi had
an after-tax net present value at recent metal prices of USD16 billion.