UPDATE 1-Mongolian Mining gets HK listing OK -sources

* Mongolian Mining aiming to raise up to $1 billion

* Proceeds to be used for acquistions, infrastructure (Adds details and background)

By Kennix Chim

HONG KONG, Aug 27 (Reuters) - Mongolian coking coal company Mongolian Mining Corp (formerly Energy Resources) has received approval from the listing committee of the Hong Kong stock exchange to proceed with its $800 million to $1 billion initial public offering, sources close to the deal said on Friday.

Mongolian Mining, whose Ukhaa Khudag mine is roughly 245 km from Mongolia's border with China, will be the first company listed in Hong Kong to be fully based and operated in Mongolia.

The company, which planned to sell up to 25 percent of its enlarged share capital, would kick off pre-marketing in the next week and start its marketing road show in mid-September, the sources said.

The company planned to use the proceeds for acquisitions and infrastructure development, one of the sources said.

The sources declined to be identified because they were not authorised to speak to media.

JP Morgan (JPM.N) and Citigroup (C.N) are handling the IPO.

Mongolia is attracting serious attention from global investors after sealing a deal last year with Ivanhoe Mines Ltd (IVN.TO) and Rio Tinto Ltd (RIO.AX)(RIO.L) to develop the $3 billion Oyu Tolgoi mine, one of the world's biggest untapped copper and gold deposits.

Now, Mongolia's domestic companies are seeking foreign capital to help them expand, and the government is trying to connect local companies and its stock market with the rest of Asia -- from Hong Kong to Korea to Japan -- hoping to turn domestic franchises into regional ones.

The company's peers in Hong Kong, Mongolian Energy Corp Ltd (0276.HK) and SouthGobi Energy Resources Ltd (1878.HK), operate mines in Mongolia but are headquartered Hong Kong and Canada, respectively.

Hong Kong has long been a natural destination for emerging Mongolian champions, given its diversified investor base, proximity to mainland China, and China's hunger for Mongolia's copper, iron ore, gold and coal. (Reporting by Kennix Chim; Editing by Chris Lewis)