Alexey Mordashev said $1.5 billion investments of Severstal will increase coal production at the Tavan-Tolgoy to 20 million metric tons of coal and bring up sales to $1 billion.
Photo: Alexander Paniotov
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Russian Tycoons Eye Mongolian Natural Resources
The Russian president supported Alexey Mordashev’s plans to secure a share in Mongolia’s largest coal field of Tavan-Tolgoy. Other Russians are also eager to compete for the asset.
Alexey Mordashev sent a letter to Vladimir Putin mid-May suggesting that $1.5 billion investments of Severstal will increase coal production at the Tavan-Tolgoy to 20 million metric tons of coal and bring up sales to $1 billion. The company only has to secure the license to develop the field.
Alexey Mordashev underscored that Russia’s governmental support is a key factor for Severstal to win the license. Sources in the presidential administration report that the president approved of the initiative.
However, Alexey Mordashev is not the only one willing to gain control over Tavan-Tolgoy, the largest coal field in Mongolia. China and Japan have already expressed their interest. Another Russian businessman, Viktor Vekselberg also asks officials to support his bid for the field.
Market experts note the growing interest of Russian businessmen to coal and uranium assets. The demand on uranium is forecast to double to the annual 28,000 metric tons in Russia. Uranium reserves in Mongolia are estimated at 1.4 million metric tons, and a key deposit is situated not far from Tavan-Tolgoy. The Mongolian uranium may also seem lucrative for Vladimir Potanin who is now negotiating his share in uranium projects in Kazakhstan and Uzbekistan.
Talks on the Tavan-Tolgoy will proceed at the Shanghai Cooperation Organization summit in mid-June.
www.kommersant.com
All the Article in Russian as of May 31, 2006
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