Viking Ashanti is moving closer to a takeover of Auminco that could see the company become a producer of thermal coal within 12-18 months.
Mongolian coal markets
As part of the takeover, Auminco shareholders will gain a 47% stake in Viking, and play a major role in the evolution of Viking as a participant in the Mongolian thermal and coking coal markets.
Auminco was established by founding shareholders and management of Coalworks Limited, which was sold to Whitehaven Coal in 2012 for approximately US$ 200 million.
Viking’s main coal project, Berkh Uul, is located in northern Mongolia adjacent to a rail link that connects to Russian markets, and provides quick access to domestic power plants and industrial users at Darkhan and Ulaanbaatar.
Berkh Uul has a JORC resource of 38.3 million t of high quality, low cost open pit unwashed bituminous coal. The mine has the potential to initially produce approximately 500 000 – 750 000 tpa of thermal coal.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/10042014/viking_to_fast_track_mongolian_coal_712/