Alexander Molyneux, President and CEO of SouthGobi Energy Resources Ltd., has said the improving investment climate in Mongolia has enabled the company to secure an attractive financing package, through which “we can accelerate the transformation of Mongolian coal resources into jobs, enhanced prosperity and sustainable development for Mongolia. This is not just about expanding our mining capacity. This investment program will see us take the first step toward establishing value-added processing in Mongolia, which now is a priority for the Mongolian Government. SouthGobi's plans include building a large and sophisticated coal-washing facility to sell processed coal products. We also will work with Mongolian partners in building transportation infrastructure in the region."

Chinese coal imports are set to continue to grow strongly for metallurgical as well as thermal coal as demand for electricity and high-quality coal increases, said Peabody Energy Corp.  Chief Executive Greg Boyce said Friday at a media conference in Sydney.

Rio Tinto took a position in Ivanhoe Mines Ltd and its Oyu Tolgoi copper-gold property in Mongolia in 2006. Rio Tinto's October 28, 2009 announcement of completing a second tranche investment in Ivanhoe to 19.7% is consistent with Rio Tinto's demonstrated objectives of having a significant interest in major mineral commodities such as copper and gold, in having those interests in large mineral deposits - both categories into which Oyu Tolgoi fits - and provides a strategic investment that positions Rio Tinto geographically into a significant and developing major mineral production region with Mongolia and neighboring areas of Russia and China, with their geologic and nearby market potentials.

T. Ganzorig, deputy director of State-owned Erdenes MGL, told a forum in Beijing last week that Chinese oil major CNPC has earmarked half a billion dollars this year for oil drilling in Mongolia, but has so far only made a small discovery. "Altogether, 26 blocks have been taken by companies including Sinopec and CNPC, but the discoveries they've made are minor and are not economically viable to develop," he said.

Rio Tinto and Chinalco have begun talks about jointly investing in Oyu Tolgoi, a project that will require Chinese infrastructure, logistics and marketing co-operation, according to a report in the Sydney Morning Herald. Chinese investment is inevitable as Rio Tinto needs China to make or transport the mining machinery, connect the electricity and water, build the rail link and of course to buy all the product.