Mongolia offers coal mine stakes to lure foreign investment

Losing more than $4 billion direct investment in three years, landlocked country Mongolia employs incentives to revive growth

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Mongolia seeks to revive growth and increase foreign investment in its stock exchange by offering stakes in 10 state-owned companies including the $4 billion Tavan Colgoi coal mine, Bloomberg News has reported.

The CEO of Mongolia’s stock exchange, Angar Davaasuren, said that the Mongolian government is considering selling stakes in power plants and other businesses.

Direct foreign investment inflows to the landlocked country of 3 million people situated between Russia and China fell to $382 million last year from $4.4 billion in 2012, while growth slowed to 5.3 percent in 2015.

“We are seeing the next year with much more optimism,” Prime Minister Chimed Saikanbileg said in an interview in London, cited by the Bloomberg.

According to Davaasuren, about 20 to 30 percent of the Tavan Colgoi coal mine with reserves estimated 7.4 billion tons may be sold to international investors in the next two or three years.

The government may also offer 66 percent of the Mongolian Stock Exchange to the public, Davaausuren added.

TRTWorld and agencies