Altan San Securities - Mongolia Investment - Mongolia has a plan to rein in Shenhua even if it gets Tavan Tolgoi

Mongolia has a plan to rein in Shenhua even if it gets Tavan Tolgoi

Dealmakers and analysts say that fears have been rekindled in Beijing that few companies or governments in the democratic world trust that China -- a resource-hungry nation under an authoritarian regime -- is pursuing multi-billion dollar resource deals for purely commercial reasons.
"They don't just want to make an investment, they want to interfere, and that's the biggest problem," an analyst has said.
It's not just Australia that is concerned about China's influence across the region. Mongolia is selling up to 49 percent of its prized USD2 billion Tavan Tolgoi site, one of the world's largest untapped coking coal deposits, and Chinese coal giant China Shenhua Energy Co is widely considered the leading bidder. But if Shenhua seals the deal, the Mongolian government will likely demand it teams up with a Western firm, such as Peabody Energy, to get around geopolitical concerns about total Chinese ownership of the strategically important asset, says Reuters, quoting dealmakers with direct knowledge of the situation.

Source: www.news.mn

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