Peabody Energy is Interested in Mining
Last Friday, delegates, headed by Taib Taheer, CEO of Northeast Asia affairs of Peabody Energy Corporation of the United States, visited the President of Mongolia N.Enhbayar. Delegates of the world biggest U.S. private coal company introduced the world class proposal on developing Mongolia’s coal production. The proposal has been developed by US leading corporations; marketing part of the coal mining proposal has been developed by Peabody, legal compliance part by Fasken Martineau, tax and financial part by KPMG and investment, bank and finance part by Morgan Stanley. In brief, this is a proposal on legal, financial and organizational regulations and preventing and protecting the environment of coal mines. The proposal includes the following:
- Regulation of coal production shall be carried out by one organization,
- The highest rate shall be set, considering minerals as products could be sold worldwide,
- Mongolian staff shall be enrolled in training and their number shall be the maximum,
- Social fund for Mongolian citizens with independent governing board shall be formed, and
- Minerals shall be the property of the state 100 percent until they are mined.
T.Taheer says, “Peabody Energy is very much interested in Mongolia. We have developed a comprehensive proposal that maintained state and private sector equilibrium. We are aiming to invest in Northeast Asia. According to our proposal, it is proper that the state should control the majority proportion.” Kartan Sumner, Director of Government relations Department says, “Mongolia is the center of world minerals. Therefore, we have a proposal that maintained the equilibrium of interests of the state, public and investors.”
“Though Mongolia has less experience in minerals mining, except Erdenet, I think it is proper to develop the legislation, dividing deposits in accordance with who found the deposit: state or private and then the state should find and collaborate with right partners. Our decision makers need to exchange information and share experiences in this regard”, says the President.
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