Coal news and updates

Mongolia’s coal Chief jailed for abuse of power, embezzlement

Batsuuri Yaichil, the chief executive officer of the state-owned company that controls the development of Mongolia’s largest coking coal deposit, has been arrested on charges of embezzlement and abuse of power.

Batsuuri is to be held at Detention Facility 461 in Ulaanbaatar for 14 days from February 25, Munkhtuya Lhagvasuren, spokeswoman for the first level District Criminal Court, said by phone. She declined to comment on the details of the case as the investigation remains under way.

The arrest comes as Erdenes Tavan Tolgoi JSC is negotiating with companies including Energy Resources LLC, China Shenhua Energy Co. and Sumitomo Corp to develop a $4 billion coal extraction project at its Tsankhi coking coal pits.

Batsuuri, a former member of parliament who also served in Mongolia’s foreign service, has been head of Erdenes TT since October 2012.

Batsuuri’s tenure at Erdenes TT has been plagued with work suspensions due to disputes with Chinese coal buyers and a disagreement with Macmahon Holdings Ltd., the main contractor for the site. Erdenes TT and Macmahon are currently in a standstill agreement as they negotiate over payments.

source: http://www.bloomberg.com