David Friedland plans to sell Mongolian Coal Mine

Jul 20 • Finance, Mining, News • 652 Views • No Comments on David Friedland plans to sell Mongolian Coal Mine

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Most Stock Exchanges understood Robert Friedland’s idea when he advertized Oyu Tolgoi shares at the world market. Some Mongolian MPs were even scared that Friedland was going to sell his shares of “Ivanhoe Mines Mongolia Inc”. The last amendment made to the OT agreed has ruled that and he was not going to sell Oyu Tolgoi shares. Instead, he is to sell Ovoot Tolgoi.

“SouthGobi Resources” is planning to sell the Ovoot Tolgoi mine which is located in South Gobi reports Mergermarket website of the Financial Times group. Is it true that Friedland wants to sell Ovoot Tolgoi? Questions were asked from David Bartel, President of South Gobi Sands and he did not approve that. Still, Financial Times pointed that Giant Ovoot Tolgoi mine is for sale.

Ivanhoe Mines owns 57% shares of SouthGobi Resources which operates the Ovoot Tolgoi mine under the name of South Gobi Sands. “China Investment Corporation” of China owns 14% share of SouthGobi Resources and Germany’s Deutche Bank owns 6% shares.

Friedland started exploration work in 2005, acquired operation license in 2007 and started to operate from September 2008. The mine has 168 million tons of coal reserves. The mine’s reserves is approved by Norvest of America and the value is almost reaching 2 billion USD. This is not a small amount of money and Investors from China is likely.

According to “China Coal Corporation” they are already started thinking about bidding for the Ovoot Tolgoi mine. Chinese interests for the mine are increasing as Shenhua Energy group is closely watching Friedland’s every move.

Oyu Tolgoi IA took a huge process and now the Government is doing nothing to control the Ovoot Tolgoi mine and have no clue or no information about the mine so far. It is going to be difficult to negotiate on coal prices if China has both Tavan Tolgoi and Ovoot Tolgoi under their names because Mongolia will mainly export to China. If we lose Ovoot Tolgoi then it is also going to be difficult to monitor Tavan Tolgoi, the world’s largest untapped coking coal mine.

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