China Shenhua and Partners Bid for Giant Mongolian Coal Project

China Shenhua Energy Co Ltd and its partners have submitted a bid to develop the giant Mongolian coal project Tavan Tolgoi, the Chinese coal producer said on Thursday.

Shenhua Energy said it had formed a consortium with Mongolian Mining Corp (MMC) and Japan's Sumitomo Corp (SUMA.BE), and the consortium handed in the bid on Dec. 1 to the Mongolian government to develop east Tsankhi and west Tsankhi, two blocks of the Tavan Tolgoi project.

Mongolia relaunched an international tender to develop Tavan Tolgoi as it tries to boost a flagging economy hit by falling commodity prices and a dip in foreign investment.

Tavan Tolgoi holds around 7.5 billion tonnes of coking coal, but Mongolia's cash-strapped government has struggled to finance its development, and little progress has been made since an international bidding process collapsed in 2011.

In 2011, the western block of the project was awarded to a consortium consisting of Peabody, a team of Russian and Mongolian firms, and the Shenhua Group, but the result was annulled after rival bidders from Japan and South Korea branded the decision unfair.

Reporting by Chen Aizhu