Mongolian Prime Minister Sukhbatar Batbold told a conference in Sydney that the country was expecting a decades-long resources boom and would require foreign capital to ensure that its natural resources were developed sustainably.

Thirty per cent of Tavan Tolgoi, which is estimated to be the world's largest undeveloped coking coal deposit, will be sold to a foreign strategic investor.

Resource giants such as Rio Tinto and Fortescue Metals Group have lined up to tender for the project.

Around 755 banking institutions and funds visited Mongolia with an interest to participate in the tender.

"Tavan Tolgoi will be required to have a listing on the Mongolian Stock Exchange," Batbold said.

The project will also be listed on an as-yet-unnamed international stock exchange.

"Mongolia wants to modernise our own stock exchange and improve our own capital market, which would provide the opportunity to the citizens of Mongolia to have access to those listings of the major assets," Batbold said.

"Economic growth of such magnitude will require sustained and concerted action over a period of years. Well thought-out, planned and executed investments are the key to this growth.

"Creation of a favourable business and investment environment, proper economic policies, and close cooperation with private capital are key to realising growth."