Mongolia demands upfront payment for Tavan Tolgoi-paper

HONG KONG Dec 28 (Reuters) - Miners bidding for Mongolia's Tavan Tolgoi, which could become one of the world's largest coal mines, have to submit a proposal for upfront payment to win the deal, the South China Morning Post reported on Tuesday.

Miners including China Shenhua Energy Co Ltd (1088.HK: Quote) (601088.SS: Quote), Peabody Energy Corp (BTU.N: Quote), Japan's Mitsui Anglo-America, Brazil's Vale SA (VALE.N: Quote) (6210.HK: Quote) and Rio Tinto Plc (RIO.L: Quote)(RIO.AX: Quote) have expressed interest in the project.

Ch.Baatbayer, a senior official at Erdenes MGL, the government entity that owns Tavan Tolgoi's estimated 5.1 billion tonnes of coal deposits, confirmed that the upfront payment was a factor in winning bidding, the report said.

Bids for the contract are due on Jan. 17. (Reporting by Daisy Ku; Editing by Chris Lewis)

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