This is the second contract that MEC has awarded to Leighton Asia in western Mongolia. The contract is based on a mine plan which ramps up to an initial 3 million tonnes of coking coal per year and includes 48.5 million cubic meters of material movement and anticipated ramp up to 5 to 6 million tonnes or more of coking coal per year.
Leighton Asia is responsible for all mining activities including load and haul of waste, load and haul of coal, drill and blast, mine planning, technical support, site camp management and catering services. In November 2009, Leighton Asia was awarded the contract to provide an initial 3 million tonnes per annum mine plan study.
Hamish Tyrwhitt, managing director of Leighton Asia, said: “This award represents an important milestone to our business in Mongolia bringing our total number of mines to three. Our work in hand at Leighton Asia has now reached a record level of AUD6bn.”
James Schaeffer Jr, CEO of MEC, said: “Our selection of Leighton as mining contractor will assist in the efficient and professional development of our initial project at Khushuut and demonstrates MEC’s commitment to building professional and local relationships for further projects.”
MEC has, at Khushuut, 149 million tonnes of JORC coal resources, substantially coking coal. This is within 600 hectares of around 330,000 hectares of MEC’s concession areas in western Mongolia. MEC has upgraded a 310km roadway for transportation of coking coal from the Khushuut Mine to Xinjiang, China.