Tavan Tolgoi IPO likely in 2013

Jun 21 • Mining, News • 611 Views • No Comments on Tavan Tolgoi IPO likely in 2013

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Mongolia’s government is planning to launch an initial public offering for the Tavan Tolgoi coal mine and list it in the first quarter of next year, the chief executive of a Mongolia-based investment bank that advises the government on mining policies said Wednesday.

The Mongolian government plans to list shares of Tavan Tolgoi simultaneously in London, Hong Kong and Ulaabaatar, but a listing in the second quarter might be “more reasonable” given global macroeconomic uncertainties and the deposit’s valuation issues, Frontier Securities CEO Masa Igata told Dow Jones Newswires in an interview.

Mr. Igata said questions over the mine’s as-yet-unbuilt railway infrastructure haven’t been resolved.

The mine produced 1 million metric tons of coal last year and is expected to produce 3 million-4 million tons this year. Production will likely rise to 7 million tons next year and 20 million tons by 2015-2017, Mr. Igata said.

The Tavan Tolgoi coal mine in Mongolia’s southern Gobi region has estimated reserves of as much as 7.5 billion tons of coal, including the world’s largest deposit of coking coal, a steelmaking material.

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