Mongolia’s Erdenes Tavan Tolgoi Plans Simultaneous IPO in Hong Kong, London and Ulaanbaatar

An announcement was made that Monogolia’s Erdenes Tavan Tolgoi mining company will be proceeding with its initial public offering “IPO” in 2011 with the objective of raising $2 to $3 billion. The company intends to go public with a simultaneous IPO in London, Hong Kong and Ulaanbaatar.

The company’s decision to also list in Ulaanbaatar is to provide an opportunity to Mongolian investors to participate in purchasing the IPO shares. Mongolia recently launched its stock exchange.

The IPO will be managed by Macquarie Group Ltd., Goldman Sachs Group Inc., Deutsche Bank AG, and BNP Paribas.

The Mongolian government is very supportive of the development of mining properties in the country. Last year Mongolia’s coal production double to 25 million metric tons,
and became the country’s biggest export.

Erdenes Tavan Tolgoi was formed in July the Mongolian government picked the participants in the mining property.  The government selected China Shenhua Energy Co., Peabody Energy Corp., and a Mongolian-Russian group to participate.  China Shenhua owns 40 percent, Peabody owns 24% and the Mongolian-Russian group owns 36 percent.