Abstract

Success at Oyu Tolgoi prompted BHP to think about possible future development of the copper project in the Gobi. For source of energy, potential synergy between developments of Oyu Tolgoi copper deposit and Tavan Tolgoi coal deposit was considered. BHP assigned a dedicated coal expert team to conduct an evaluation of Tavan Tolgoi. BHP was granted an exploration license for Tavan Tolgoi. Program to assess the coal deposit along with transportation routes for consumer markets was undertaken. The limited exploration program confirmed quality of Tavan Tolgoi as world class source for both coking and thermal coal. The economics was assessed as a standalone project with pessimistic conclusions. The exploration license for Tavan Tolgoi was surrendered.

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