Guildford Coal subsidiary company, Terra Energy, has reached a milestone in Mongolia as it reports the Baruun Noyon Uul mine has shipped 14,300 t of coal.
Peter Kane, managing director of Guildford Coal, said this was the second trial shipment and testing of the latest load is due to be completed by 30 October.
"We are confident that testing will confirm more favourable results than the first trial batch of
BNU coal, as coal has been taken direct from the mine rather than the long term mine stockpile and efficiencies of the washplant have improved,” Kane said.
The company also intends to ramp up production in the coming months, with
preparation for mining to be conducted throughout November and full-scale production targeted in early 2015 in line with earlier forecasts.
"Production is expected to be cash flow positive in 2015, with a targeted margin (per ROM
tonne) of AU$ 9 – 14. The margin of AU$ 9 – 14 incorporates the estimated impact of the recent announcement by the Chinese Government re-instating coal import tax of 3% on coking coal imports,” Kane added.
"The company remains confident that it is on target to negotiate a profitable offtake agreement to secure the operation of the BNU mine", Kane concluded.
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/16102014/mongolian-coal-operations-ramp-up-production-1417/