Mongolia may add banks to Tavan Tolgoi adviser list

Oct 19 • Mining, News • 874 Views • No Comments on Mongolia may add banks to Tavan Tolgoi adviser list

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Mongolia could add “one or two” banks to its list of advisers for the multi-billion dollar initial public offering of Erdenes-Tavan Tolgoi, believed to be the world’s biggest coking coal deposit, a senior official said on Monday.
BNP Paribas , Deutsche Bank , Goldman Sachs and Macquarie have already been shortlisted as advisors on the IPO, expected in 2012 and set to raise as much as $15 billion, according to some bankers.
Tsogt Tsenguun, head of the investment and financing department at Erdenes-Tavan Tolgoi, said one or two other names could be added as joint bookrunners or co-lead managers.
“It all depends on the listing structure and the venue,” Tsenguun said, on the sidelines of a conference.
The government and state-owned Erdenes-Tavan Tolgoi are deciding on a venue for the listing, with Hong Kong and London among locations being considered.
Tsenguun declined to comment on the status of talks with international mining partners, after the government backtracked in July from an initial proposal to hand development rights in the western block of the project to Chinese group Shenhua , U.S. company Peabody Energy and a Russian-Mongolian consortium.
After receiving complaints over the bidding process, the government has been trying to devise an alternative.
Tsenguun said the talks were confidential.
Mongolia’s prime minister, Sukhbaatar Batbold, told Reuters last month he was confident the Tavan Tolgoi IPO would go ahead in 2012, adding he hoped an investment agreement could be sealed in the next session of parliament.
Mongolia’s rush to launch Tavan Tolgoi is partly related to promises made by the Mongolian People’s Revolutionary Party at the last election to give every citizen as much as 1.5 million tugriks in dividends ($1,200) from the country’s mining boom.
Source: Reuters

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