Mongolia’s plans to develop part of the Tavan Tolgoi coal deposit, one of the world’s largest sources of the fuel, have stalled amid political jousting ahead of June parliamentary elections.
China Coal Energy Co. plunged the most in almost three years in Hong Kong trading after its parent was ordered to cease operations in Shanxi province following a fatal mine accident.
Mongolia President Tsakhia Elbegdorj set an end-of-year deadline to select companies to develop part of its biggest coal field, seeking to resolve a year-long battle for the resource between groups from five nations.
China Shenhua Energy Co., the listed unit of the nation’s biggest coal producer, said it expects 2012 sales volumes to surpass a target set at the end of last year because of rising demand.
A record wave of consolidation in China’s mining industry is creating bigger companies that will have the muscle to compete with the likes of BHP Billiton Ltd. for overseas acquisitions.