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Monday, March 16, Follow the news on Facebook , Twitter and view newswire archive here. Headlines in Italic are ones modified by Cover Mongolia from original. Erdenes Tavan Tolgoi , the state-owned company that holds the license to the deposit, was saddled with the debt to Aluminum Corp.
While Erdenes has repaid a portion of the debt with coal shipments, an interest of more than 10 percent has inflated the amount outstanding.
Tavan Tolgoi, located kilometers miles north of the Chinese border in the Gobi Desert, is one of several large scale mineral deposits that Mongolia expects will stimulate the economy. The country's pace of economic growth was 7. Mongolia, which will retain full ownership of the Tavan Tolgoi deposit, has set a requirement that the debt be paid by the consortium.
Energy Resources Chief Executive Officer Battsengel Gotov is responsible for negotiating on behalf of the consortium , said Enkhsaikhan. Battsengel can't comment because of a media "blackout period," spokeswoman Ariunaa Baldandorj said. While a target date to conclude negotiations has yet to be set, results are expected "within this month," Enkhsaikhan said. Another key issue between Mongolia and the consortium is the construction of a railway network to transport coal from the mine to the Chinese border.