Courtsey news Dow Jones Jan 10, 2011
India's International Coal Ventures Pvt plans to bid for developing huge coal reserves in Mongolia's Tavan Tolgoi mining deposit, sources reported.
Government officials and industry executives said that ICVL's interest in the Mongolian block comes at a time when coal and other resource sectors are seeing a wave of multibillion dollar mergers and acquisitions activity globally, much of it driven by increasing consumption in emerging economic giants China and India.
The Indian company is lining up for a tender offer by the Mongolian government scheduled January 17 to develop part of the Tavan Tolgoi mine in the country's southeast. The mine contains some of the world's largest unexploited reserves of coking coal, a key raw material for making steel. Overall, the mine has an estimated coking and thermal coal reserves of 6.4 billion tonnes.
A mines ministry official told Dow Jones Newswires that ICVL will likely bid for a share in the mine's western block with reserves of 1 billion tones.
About 70% of the block is likely to be coking coal, for which Indian steel companies mostly rely on imports, he added.
If ICVL bids, it will face stiff competition from Japanese and Korean companies.
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