A Russian-led consortium, Peabody Energy and a joint venture (JV) between Shenhua and Mitsui have been selected to jointly develop the Tavan Tolgoi coal deposit in Mongolia.
Tavan Tolgoi coal deposit will require an initial investment of more than $7bn.
The deposit has estimated reserves of 7.5bn tons of coal, including the world's largest untapped deposit of steel-making coking coal.
If the Mongolian Government approves this proposal, all three parties will jointly develop the Tavan Tolgoi deposit, reports Reuters.
The parties will develop the western Tsankhi block, which holds around 1.2bn tons of reserves, 65% of which is coking coal.
The block has an estimated production life of more than 30 years, with an annual production capacity of 15Mtpa.