Peabody Energy representatives met with Mongolian government officials, including the prime minister and speaker of parliament, last week in Mongolia to discuss its interest in doing business in the country – and its particular interest in the 6 billion tonne Tavan Tolgoi coal deposit, Reuters reported.
“Of course it is preferable for a world-class American company to be involved in the development of Mongolian resources," US Ambassador to Mongolia Mark Minton told Reuters.
BHP Billiton held the rights to the area in the late 1990s but relinquished them after deciding Chinese coal prices would not justify initial capital costs.
Currently local Mongolian companies mine the resource with small-scale mines.
Some of the companies currently active in Mongolia include BHP and Canadians Ivanhoe Mines and UGL Enterprises.
OEMs and suppliers have also been actively selling into the region – these include DBT, Joy and Mine Site Technologies.
