February 18, 200
LONDON -(Dow Jones)- A consortium of three Russian companies has submitted an investment proposal to the Mongolian government to develop Tavan Tolgoi, one of the world's largest coal deposits, spokespeople of two of the companies said Wednesday.
The consortium consists of OAO Severstal's (CHMF.RS) mining arm Severstal Resources, En+ Group, energy branch of billionaire Oleg Deripaska's Basic Element holding, and Renova, the investment vehicle of billionaire Victor Vekselberg.
"The consortium presented its proposal to the government of Mongolia in January and received a positive reaction", Severstal and En+ said, while Renova wasn't available for comment.
All three companies tried to acquire rights for the deposits in 2006, but the Mongolian government canceled the sale.
Vladimir Yakunin, chief executive of Russia's state-owned railways said Tuesday the company is in talks with the Mongolian government on creating a joint venture to facilitate the development of the country's mining resources.
China Shenhua Energy Co. (1088.HK), BHP Billiton Ltd. (BHP), Companhia Vale De Rio Doce (RIO), and Peabody Energy Corp. (BTU) have also expressed an interest in the Tavan Tolgoi coal deposits, Dow Jones Newswires reported Tuesday, citing people familiar with the matter.
The Mongolian government is seeking to sell a 49% stake to develop the Tavan Tolgoi deposits.
-ByAlexander Kolyandr, Dow Jones Newswires; +44 20 7842 9410; alexander.kolyandr@dowjones.com