It is reported that US miner Peabody Energy, a venture between China Shenhua and Japan Mitsui & Co and a Russian Railway led consortium have been picked as preliminary winners to jointly develop the prized Tavan Tolgoi coal deposit.

The official from Mongolia Resources and Energy Ministry said "They are the preliminary winners and all the negotiation materials have already been submitted to the parliament for discussion."

The official said "It only needs an approval from the parliament."

Members of the Japanese Korean Russian consortium include POSCO, utility firm KEPCO, trading firm LG Corp and Daewoo International, Russian Railways and Japanese trading houses Itochu Corp, Sumitomo Corp, Marubeni Corp and Sojitz Corp.

It is reported that the three groups will jointly develop the western section of the Tavan Tolgoi field, estimated to contain 5 billion tonnes of coal. Estimated project costs are USD 7.3 billion.

Mongolia has split the field up into two zones: one for a group of international mining companies, and the other for Mongolia Erdenes Tavan Tolgoi in which the government will own 50% and the other 50% will be distributed among Mongolian investors and private individuals. An initial public offering of Erdenes Tavan Tolgoi shares is planned for the second half of 2011.

(Sourced from Interfax and Reuters)