The weak global market conditions and volatility in the resource market continues to pose significant economic and funding challenges for junior and mid-tear mining companies around the world. One such company battling to survive is Mongolia focused coal company, Guildford Coal, which recently announced a change of name and debt restructuring plan.
Going forward the company will be known as TerraCom Ltd with the company directors believing that “this name far better reflects the strategic direction and focus to transition to a dynamic energy and resources company.”
Guildford Coal operates the BNU coal project in South Gobi province, Mongolia, where it is in the process of ramping up production to the target annualised production rate of 1.5 million tpa by the end of the year. The BNU coal project restarted production of metallurgical coal at the end of last year. It contains JORC resources comprising 15.26 million t measured, 8.77 million t indicated and 3.04 million t inferred.
The company has offtake agreements for its coal with two Chinese customers: JISCO and Haohai. “While the market continues to remain soft there are some positive signs and there is still strong buyer interest for the BNU coking coal,” the company said in its quarterly report. “Guildford remains committed to developing its Mongolian business in the most capital and cost efficient methods.”
In addition to the BNU project, Guildford is also developing the Uvs project in northwestern Mongolia, where is it targeting production of potash salts, brines and metallurgical coal. The company undertook a successful site visit during 3Q15, which included meetings with local ministry representatives and confirmation of approval of the environmental plan for the three licenses that comprise the project.
Outside of Mongolia, Guildford Coal is also developing two thermal coal projects in Queensland, Australia: the Northern Galilee project and Springsure project.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/03112015/guildford-coal-to-rebrand-as-it-focuses-on-bnu-project-3103/