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Operations restart at Mongolian coal mine

World Coal,

Prophecy Coal has announced it has resumed operations at its Mongolian Ulaan Ovoo coal mine. The company said it was pleased that the restart plan was on time and within budget.

Coal is once again being sold on a continual basis to a number of Prophecy customers, as the road condition from the mine to the Sukhbaatar rail siding is normal.  All required mining, safety, and transportation staff have been re-hired and the mining and transportation equipment that was leased-out while the mine was idled has now been recalled and has arrived on site.

There is now a fleet of three operating mining excavators, six dump trucks and over 20 transportation trucks onsite. With this equipment, Prophecy Coal said it expects to mine and transport approximately 30,000 to 50,000 tpm of coal in November and December, weather permitting.

The weather in the area is currently relatively dry, with temperatures ranging between -15oC and 7oC over the coming days, and precipitation (snow and rain) remaining at an average rate for this time of year.

Prophecy Coal has invested over US$ 55 million since 2010 in its Ulaan Ovoo coal project. This investment includes road and bridge construction, mining vehicles, mining camp, pre-stripping and other infrastructure and community improvement.

The thermal coal mine at Ulaan Ovoo is located 17 km from the Russian border and 120 km from both Mongolian and Russian rail links.

Wardrop Engineering has estimated 174 million t of measured and 34 million t of indicated coal resources in a NI 43-101 report, released in 2010. The bituminous coal at the minesite has a calorific value of 5,040 kcal/kg, a low ash content of 11.3%, low sulfur of 0.4% and is suitable for export.

The mine features a single large coal seam 45 – 80 m thick, with an average strip ration of 1.8:1. There will be no need to wash the coal for the first 8 years of mining operations.

Edited from various sources by Sam Dodson

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