Mongolia cancels $2 bln sale of Tavan Tolgoi stake -sources

HONG KONG Feb 4 (Reuters) - Mongolia's government has canceled the auction of an estimated $2 billion stake in one of the world's largest undeveloped coal deposits, ending hopes of global mining giants eager for a slice of the project, sources said.

JP Morgan (JPM.N) and Deutsche Bank (DBKGn.DE), who were hired by the government, are no longer advising on the sale of the stake, three sources familiar with the matter told Reuters on Thursday.

Shortlisted bidders for a stake in Tavan Tolgoi included heavyweights BHP Billiton (BHP.AX), India's Jindal, Brazil's Vale (VALE5.SA), U.S. coal miner Peabody (BTU.N), and China's Shenhua (1088.HK).

The Mongolian government could not be immediately reached for comment. Deutsche Bank and JP Morgan both declined to comment.