Mongolian Mining Corp. (MOGLF)

[mhsg]

Don't believe either IPO or rail will be delivered, but the fact it is being discussed in Parliament does offer hope......

The IPO cannot happen without firm rail plans as 90% of the deposit will not be economic. I am sure the Government will have very unrealistic expectations and valuations.

Mongolian Parliament OKs plan to sell 30% of Tavan Tolgoi mine
29TH JUNE 2018

BY: BLOOMBERG

ULAANBAATAR – Mongolian lawmakers approved a plan to sell up to 30% of the troubled Tavan Tolgoi coal mine in the Gobi desert, the latest attempt to develop what’s anticipated to be massive coking and thermal coal deposits.

The north Asian country’s Parliament on Friday voted in favour of an initial public offering in State-owned Erdene Tavan Tolgoi. In a broadly written resolution running about 300 words, the legislation instructed Prime Minister Khurelsukh Ukhnaa to take "urgent measures" for the construction of a railway and roads related to the project.

A potential IPO is at least the third effort to develop the mine after international partnerships failed in 2011 and 2015. The latter included China Shenhua Energy, Japan’s Sumitomo, and Mongolian Mining investing $4-billion in the mine and a railway for sales to China.

"Based on the quality, a lot of commodity players will be interested," said Munkhjargal Otgon, deputy CEO of Ulaanbaatar-based Golomt Capital.

The Tavan Tolgoi deposit holds 1.8-billion tons of coking coal and 4.6-billion tons of high-quality thermal coal, according to an April 20 presentation by state resources company Erdenes Mongol.

Erdenes Tavan Tolgoi declined to comment.

In addition to the transportation routes, the resolution called for the construction of a power plant at the site, which had been part of Rio Tinto Group’s plans to develop the Oyu Tolgoi copper/gold mine.