Mongolia's new prime minister has said the government has a “moral right” to full control of the $2.4bn Tavan Tolgoi coal project, but has vowed not to abuse the rights of its private developers, according to officials and an industry bulletin.

The government would soon start talks with the local consortium that owns the project in order to reach a deal protecting the interests “of all parties”, Sanj Bayar, prime minister, said in a speech last week to the Great Hural, Mongolia's parliament.

Soaring Chinese appetite for energy has sparked intense interest among foreign miners in the coal project, with BHP Billiton and Peabody Energy reportedly discussing potential investment, and China's Shenhua Energy saying last month it hoped to invest in it.

Under a Mongolian law passed last year, the government has the right to take a 50 per cent stake in strategically important mining projects that are the result of state-funded prospecting.