On July 5, the largest US-based coal producer Peabody Energy confirmed that the government of Mongolia has selected Peabody to be part of a global energy consortium to develop the Tavan Tolgoi coking coal reserve in the South Gobi region. Accordingly, the value of Peabody shares has increased by two percent.
China Shenua Energy, the largest coal mining state-run enterprise in mainland China, will get a 40 percent stake in the project, a Russian/Mongolian consortium will hold a 36 percent interest, while Peabody will own the remaining 24 percent.
The world's largest steelmaker ArcelorMittal and the Brazilian iron ore miner Vale were also among the companies competing for the project.