Mongolia: Could things be looking up for Tavan Tolgoi? | beyondbrics: "Sometimes an abundance of riches can be a headache.
That has been the problem facing Mongolia as it sorts out what to do with a huge coal deposit in the middle of the Gobi Desert.
The state-owned deposit, Tavan Tolgoi, has enough coking coal to feed China’s import needs for more than 40 years. However due to mismanagement and weak coking coal prices, the mine has fallen on hard times. In January, it was running so short of cash that it suspended shipments to its main customer. That customer, China’s state-owned Chalco, is also one of the mine’s biggest creditors, after a 2011 deal under which Chalco lent the mine $250m that was to be repaid in coal shipments."
'via Blog this'
