Korea offers 260 billion USD of investment for TT

Jul 28 • Mining • 221 Views • 4 Comments on Korea offers 260 billion USD of investment for TT

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G.Batkhuu, Deputy Speaker of the SGK hosted a meeting with Korean representatives lead by Jun Jan Sun, member of the National Assembly of Korea and leader of the Mongolia-Korea Parliamentary group. ‘Kores’ Corporation is included in the South Korean business group and this company is responsible for all types of minerals except gas and crude oil. Joint investment of 260 billion USD is offered for Tavan Tolgoi from total of 11 South Korean national corporations.
G.Batkhuu said that there are lots of interests in the TT from overseas. It is going to be easy for everyone If the investment deal comes from joint investors like yourself but we are not in rush with this IA. In terms of TT, the license is owned by the Government therefore we are looking for an epic investment. This TT investment agreement will be discussed after the OT IA says the Deputy Speaker of the SGK.

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4 Responses to Korea offers 260 billion USD of investment for TT

  1. Barry says:

    Is this number correct?
    $260 billion United States Dollars for Tavan Tolgoi?
    It will be very interesting to see howe the IA for TT developes.
    If this number is correct, Mongolia will be on the investment lists of every mining company ion the world.
    There big problem will be how to deal with the potential inflation from the influx of so much money, into such a relatively small economy.
    I wish them luck. “B”

  2. OTuten says:


  3. jato says:

    Rest assured, the $260 billion is the investment over the life of the project. That is not a great amount when you consider that the project will (conceivably) continue to produce coal for 200-300 years. Don’t be mislead by the South Korean obvious exaggeration of their “investment”. The plan for TT is for 30 million metric tonnes of coal to be mined / sold annually. That approximates $3 billion / year gross revenues–much less after taxes, expenses, overhead, etc. Of course, the South Korean consortium is including every possible penny they put into the project over the mine’s entire life (approx 6 billion metric tonnes / 30 million tonnes per year = 200 year). When every conceivable “investment” expense along with the eroding effects of inflation are taken into account, the $260 billion will be nothing more than the standard investment that any large corporation /consortium would be ready to make. In other words, the $260 billion is “hype”.

  4. Barry says:

    Thanks, I thought that was what was going on.
    I wonder if they extend the OT investment out in the same fashion what kind of numbers they would come up with. Thelife of OT and the surrounding licensed area could last as long as 200 years by my understanding. In 15 to 20 years there is no telling what the production numbers might be. It is all about development costs and the investment return.
    With China future plans to expand electric generation into nuclear, coal at some time will be needed less. One article stated that China plans 450 nuclear plants by 2050. That would make Mongolian uranium quite valuable, at some point in time.
    But right now they need to do something about resource production. SOON. “B”

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