Mongolian Premier Looks to Advance Deals With China
HONG KONG—Mongolia's prime minister said he hoped to make progress on several "serious projects" under discussion with China during meetings with leaders in Beijing in the next few days.
"On this trip, it's our intention to move forward with particular projects, especially in mining and infrastructure," Prime Minister Sukhbaatar Batbold said Tuesday during an interview in Hong Kong.
While not saying exactly what deals he hope to reach, Mr. Batbold referred to a "major mining project" and China's demand for energy.
Mongolia is weighing bids from overseas investors, including a consortium with China's Shenhua Group, to develop the massive Tavan Tolgoi coal deposit in the southern Gobi desert. It also aims to develop part of the deposit itself with the help of contract miners.
Tavan Tolgoi contains some of the largest untapped coal reserves in the world. Its coking coal reserves are especially coveted for their use in making steel, but the site also contains a huge supply of thermal coal that could be used to feed Chinese coal-fired power plants.
Mr. Batbold said Hong Kong remains a candidate to host a much-anticipated listing of the state-owned Tavan Tolgoi assets, but that the government was still working with its financial advisers on the plan. He said a dual listing in Hong Kong and London was also a possibility.
In January, London Stock Exchange Group signed an agreement to help restructure and develop the Mongolian stock exchange.
While in Hong Kong, Mr. Batbold presided over the opening of Mongolia's first Hong Kong consulate and met with the territory's chief executive, Donald Tsang.
Mr. Batbold warned that "if there is a slowdown in China, it will definitely have its impact on Mongolia," given the country's dependence on Chinese demand for its resources.
He also said that demand for gold should remain strong at a time when the global economy was looking shaky.
"We don't think the [sense of] crisis is over. Confidence is not completely there," Mr. Batbold said, adding "to some extent, we believe gold will remain a very important asset."
Moves to unearth and sell Mongolia's vast deposits of gold, copper, iron ore and other minerals are helping bring new wealth to what has been one of East Asia's poorest economies.
Write to Peter Stein at peter.stein@wsj.com
"On this trip, it's our intention to move forward with particular projects, especially in mining and infrastructure," Prime Minister Sukhbaatar Batbold said Tuesday during an interview in Hong Kong.
While not saying exactly what deals he hope to reach, Mr. Batbold referred to a "major mining project" and China's demand for energy.
Mongolia is weighing bids from overseas investors, including a consortium with China's Shenhua Group, to develop the massive Tavan Tolgoi coal deposit in the southern Gobi desert. It also aims to develop part of the deposit itself with the help of contract miners.
Tavan Tolgoi contains some of the largest untapped coal reserves in the world. Its coking coal reserves are especially coveted for their use in making steel, but the site also contains a huge supply of thermal coal that could be used to feed Chinese coal-fired power plants.
Mr. Batbold said Hong Kong remains a candidate to host a much-anticipated listing of the state-owned Tavan Tolgoi assets, but that the government was still working with its financial advisers on the plan. He said a dual listing in Hong Kong and London was also a possibility.
In January, London Stock Exchange Group signed an agreement to help restructure and develop the Mongolian stock exchange.
While in Hong Kong, Mr. Batbold presided over the opening of Mongolia's first Hong Kong consulate and met with the territory's chief executive, Donald Tsang.
Mr. Batbold warned that "if there is a slowdown in China, it will definitely have its impact on Mongolia," given the country's dependence on Chinese demand for its resources.
He also said that demand for gold should remain strong at a time when the global economy was looking shaky.
"We don't think the [sense of] crisis is over. Confidence is not completely there," Mr. Batbold said, adding "to some extent, we believe gold will remain a very important asset."
Moves to unearth and sell Mongolia's vast deposits of gold, copper, iron ore and other minerals are helping bring new wealth to what has been one of East Asia's poorest economies.
Write to Peter Stein at peter.stein@wsj.com
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