The Mongolia news media is reporting that BHP Billiton has withdrawn its bid to mine the massive Tavan Tolgoi coking coal deposit.

The agreement that was being negotiated would have given BHP 49% of the coal mine as the Government of Mongolia would retain 51% ownership.

Tavan Tolgoi is considered the world's largest undeveloped coking coal deposit with a reserve of 6.5 billion tonnes of high grade coking and thermal coal. BHP originally secured the right to develop the deposit in the 1990s, but determined it was not economic at the time and returned the license to the Mongolian Government.

The financially strapped Mongolian Government is facing a budget deficit this year, partly due to declining copper prices and cutbacks in mining exploration.

(Sourced from mineweb.co.za)