The deposit is said to host proven reserves of 2.1 billion tonnes of coal, including coking coal, and is located in the Lensko-Tungussky coal region, one of the world's largest reserves.

Elginskoye is owned by Russian listed Elgaugol, which is licensed to mine coal in the field's north-western section. The country's rail monopoly RZD owns 29% in the listed company, ZAO Eastern Construction and Contract Corporation owns 29% and the Republic of Yakutia owns 39%.

Initially, it appeared the project would be sold to the highest bidder but the strategic importance of the project for the entire region led the central government to delay the process and opt for a tender approach.

Tender documents for the project’s development have been bought by Sumisho Coal Far East, Sumitomo, Sojitz Corporation, the owner of the licence Elgaugol, Renova and Yakutugol, according to Interfax. Earlier last year, BHP Billiton was rumoured to have expressed interest but it is unclear whether the major mining entity is pursuing an acquisition in the project any further.

There are sufficient reserves to support coal mining for more than 100 years, and the project is seen as strategically important for the industrial development of the entire Far Eastern region as well as to expand Russia’s export potential.

Elgaugol issued a press release saying reports were incorrect that foreign investors would be denied the opportunity of acquiring a stake in the project. The company said it both expected and welcomed the participation of foreign capital. Nevertheless, it seems likely the Russian government will insist majority control of the project remains in Russian hands.

Major infrastructure links will be needed to get the project off the ground including a 320km rail link to RZD's network to transport coal to the Pacific coast. An export terminal at the port of Vanino in the Khabarovsk region must also be built.

An investment of around $US2-2.5 billion dollars is believed to be needed to get the 30 million tonne per annum operation up and running. Two thirds of output will be exported.

"An international consortium, with Russia playing the role of leading strategic investor, could be an effective form of implementing this project. It would help draw advanced technology and capital and concurrently control this promising resource base,” Russian president Vladimir Putin said, according to Interfax.