Tavan Tolgoi Seeks Gateway: "Tavan Tolgoi is a strategic deposit located in one of the world’s richest coking coal basins. But Mongolians’ expectations for this deposit are not likely to result in development, but rather in debt troubles. The company was granted a loan of USD 300 million from the Development Bank of Mongolia, and USD 131 million from Golomt Bank and Trade and Development Bank.
“This is aimed at putting the deposit in economic turnover and to recover the operating costs”, said the company’s management team in an explanation about the loans. Erdenes TT’s debt is growing significantly while the project’s progress stagnates.
The company borrowed USD 350 million from Aluminum Corp. of China Ltd. (Chalco). The coal deposit’s available resources account for 7.4 billion tonnes. Davaajavyn Gankhuyag, mining minister, said in a statement last week that Erdenes TT’s initial public offering on international stock markets would see the light of day before 2015."
'via Blog this'
