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Mongolia to launch open international bid to select management for coal giant

Mongolia to launch open international bid to select management for coal giant© IntelliNews

Mongolia is to launch an open international bidding process to select a management team for major state coal mining company Erdenes Tavan Tolgoi (ETT).

ETT owns a large part of the sprawling six-billion-tonne Tavan Tolgoi coking and thermal coal deposit located near Mongolia’s southern border with China. The company was embroiled in the huge “coal mafia” corruption scandal that rocked Mongolia in late 2022.

Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai has given instructions to officials to undertake measures to initiate the open bid, Montsame, the official state-owned Mongolian news agency, reported on September 26.

Oyun-Erdene has, meanwhile, reportedly asked Cabinet members to improve ETT’s corporate governance and increase its profit and value.

International consultants will be hired to help select the winning bidder.

The announcement of the ETT bid comes as Bloomberg reports that Chinese steel mills are snapping up so much coal from Mongolia that the country has displaced Australia as their top supplier.

The success is attributed to Mongolia’s cheaper coking coal prices and geographical convenience compared to Australia. Mongolia provided more than half of its giant neighbour’s steelmaking-coal imports last year.