The divestment proposal is part of the plan by the country to sell stake in ten state owned enterprise to revive economic growth.
Around 20% to 30% of stake in the Tavan Tolgoi coal mine is planned to be offered to foreign investors in London or Hong Kong.
The mine is located in the South Gobi desert, and it produces the higher quality coking coal used in steelmaking, with reserves estimated about 7.4 billion tonnes.
The country is reportedly seeking overseas investors to explore more natural resources that are reportedly worth more than $1.3 trillion.
Bloomberg cited Mongolian Prime Minister Chimed Saikhanbileg as saying: "We are seeing the next year with much more optimism" after growth slows to 5.3 percent in 2015.
