Mining operations will restart at TerraCom’s Baruun Noyon Uul (BNU) hard coking coal mine in Mongolia’s South Gobi Province in 3Q16, according to the company’s recent quarterly update, when the mine’s coal stockpiles are “sufficiently depleted”.
Mining at BNU had been suspended since February 2016, allowing the company to establish an alternative supply chain and run down mine stockpiles to target levels.
The new supply chain has now been commissioning, including the full commissioning of the coal preparation plant at Ceke and the integration of a new set of trucking providers. During 2Q16, coal was successfully delivered to steel mills in China via the new supply chain.
Since February, the Chinese hard coking coal market has also stabilised and there are signs of recovery for premium products, such as BNU hard coking coal, the company added. The new preparation plant is also allowing the company to develop new market products of differing ash levels to meet end-user requirements.
Mining personnel and assets were retained during the suspension of mining activity to enable, allowing the rapid restart of production. As a result, the operation is ready for “immediate recommencement”, the company said.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/04082016/terracom-to-restart-mining-at-bnu-2016-2157/