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Hungary recognises UCG as mining method

World Coal,

Hungary has modified its Mining Law to set out a legal framework for the development of underground coal gasification (USG) projects that could allow the country to exploit its extensive remote coal reserves.

UCG is now included within the existing law as a mining method, giving mining companies the opportunity to apply for a Mining Plot that would grant exclusive long-term rights to mine the targeted coal using underground coal gasification.

Companies can also apply for a UCG demonstration licence of up to six months following the conclusion of the exploration period, but prior to the final application of a Mining Plot. This allows companies to prove the technical and geological conditions are right for applying UCG to a targeted resource before applying for the final licence.

The royalty for UCG will be 2% on the value of the quantity of the utilised mineral resource

Guidelines for UCG
Hungary’s implementation of UCG regulations follows the completion of a study titled Guidelines for Implementing Underground Coal Gasification in Hungary that analysed UCG technology, its potential in the country, as well as environmental considerations.

The report also studied the geological aspects of site selection, risk assessment and legislative aspects of UCG and its application in Hungary and globally, providing a thorough assessment of the commercial and environmental desirability of UCG application.

The UCG process allows stranded coal resources to be developed, as it eliminates the need to mine the coal.

Edited from various sources by Katie Woodward

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