China Shenhua Energy Co Ltd<601088><1088>, the world's biggest coal producer by market value, is in talks with the Mongolian government to buy a coal mine in the nation, the China Daily reported on Tuesday, citing the company's vice president Wang Jinli.

Wang said that there will be some progress this year on its bid for the Tavan Tolgoi mine in Mongolia, one of the largest coal mines in Asia,

However, the transaction will still be subject to the Mongolian government's offer, according to Wang, without giving details.

Besides Shenhua, the deal attracted many other companies from over 20 countries, including Russia-based Engroup, BHP Billiton and Peabody Energy.

According to Mongolian media reports, the Tavan Tolgoi mine will be jointly developed by the Mongolian government and one or more foreign firms. The government will hold more than 50% in the exploration project and has hired Morgan Stanley and Deustche Bank as the financial advisors.

The Tavan Tolgoi mine, located in southern Mongolia, has proven coal reserves of 6.4 billion tons.