Abu Dhabi set to gain from coal investment in Mongolia

|Special byTAP Staff|Abu Dhabi-based Aabar Investments is expected to reap rich dividends from its involvement with Mongolia’s coal industry in the wake of a landmark mining deal concluded recently.

Aabar Investments has been the largest UAE investor in Mongolia since 2011 through its investment into Gobi Coal & Energy Ltd, which has been credited with the discovery of the massive Oyu Tolgoi project. Its two main projects, located in southwest Mongolia, contain a combined total of 318 million tonnes of high grade semi-soft coking coal.

Mongolian Prime Minister Saikhanbileg, who has just concluded a visit to the UAE, has been responsible for reaching a landmark deal for the multibillion dollar development of the Oyu Tolgoi copper-moly-gold mine, which is expected to be the third largest copper mine in the world following its planned expansion.

In 2011, the company launched an Initial Public Offering on the Toronto Stock Exchange when public markets and coal prices were near their peak values. But in view of a rapid decline in coal prices a year later Gobi Coal held back its cash, which helped the company pursue a broad consolidation strategy in and around Mongolia.

It is believed that Gobi Coal provides Aabar with a strong platform for consolidation of attractive mining projects in a country that has been endowed with some of the richest mineral deposits in the world. According to Gobi Coal chairman Mohammed Munshi, Aabar Investments and Gobi Coal are ideally positioned to create value on investments in Mongolia.

Aabar’s mandate is to invest across industry sectors in attractive opportunities with significant growth potential which fulfills the investment strategy of the government of Abu Dhabi. Aabar invests in various sectors including real estate development, financial services, energy, commodities and aerospace, with many of its investments being made by way of international partnerships and alliances.

Aabar’s strategic relationship with large multinationals has led to successful partnerships through profitable joint ventures that ultimately have direct or indirect benefits to Abu Dhabi.