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Mongolian Government formally commissions coal mine

World Coal,

Guildford Coal has announced that the company’s Baruun Noyon Uul (BNU) coal mine has been successfully and formally commissioned for operations and sales by the Mongolian Government.

The company is no awaiting final permitting of the coal transport company that will deliver first sales from the mine to the coal distribution hub at Ceke, on the Chinese border. The BNU mine is situated approximately 130 km by road from Ceke.

“This is a significant development milestone that enables the BNU mine to extract coal in readiness for first sale,” Peter Kane, group managing director of Guildford Coal, said in a statement.

The BNU mine is part of Guildford Coal’s South Gobi project, located 1000 km from Mongolia’s capital city, Ulaanbaatar, and approximately 50 km east of South Gobi Resources’ Ovoot Tolgoi mine.

The South Gobi project has the potential to support near-term development via and opencast coal operation. The BNU mine has a JORC coal resource of 70.4 million t, which is an upgraded figure from an initial 63.1 million t calculation.

Mining equipment

The company currently uses relatively small capacity excavators and trucks at its BNU mine. Overburden removal activities are currently continuing adjacent to completed test pits, with the company using dump trucks and shovels.

Guildford Coal has announced that production rates being achieved are satisfactory and are consistent with the overall project schedule.

Larger equipment, including a Caterpillar 300 t excavator and Caterpillar 777 (80 t) dump trucks are due to arrive at the project.

BNU mine potential

BNU has the potential to ramp up production to produce in excess of 3 million tpa from its opencast metallurgical coal operation, according to analysts.

“Guildford Coal has positioned itself as the project developer of choice in the region, an important step in providing other opportunities for future growth,” Kane said. 

Edited from various sources by Sam Dodson

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