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Japan Objects to Mongolian Bidding

TOKYO — Japan has joined South Korea in complaining to Mongolia over the bidding process for part of its massive Tavan Tolgoi coal development project, as firms from both countries appear to have been excluded, even though they were allied with some of the apparent winning bidders.

Japan's complaint said Mongolia had persistently called on Japan to help with the development of its mineral resources and that President Tsakhia Elbegdorj "in a visit last November stressed that bilateral partnerships in minerals development would be mutually beneficial," said a government source who asked not to be identified.

Mongolia said this month that it had picked U.S. miner Peabody Energy, China's Shenhua and a Russian Railways-Mongolia consortium out of six preferred bidders to develop the deposit, but later said the decision was not final.

(Reuters)

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