Guildford Coal subsidiary Terra Energy has secured a new mining licence Khar Servegen (KS) MV- 019149 from the Minerals Resource Authority of Mongolia (MRAM).

Licence

The licence has been given for 30 years up to 2045 and has an option to extend up to two additional terms of 20 years each.

New licence will support the firm’s expansion plans for coking coal operations in the South Gobi region.

The granted licence includes part of the previous prospective 12600X exploration licence with recently announced JORC 2012 inferred resource of 15Mt and additional Exploration Target of 26Mt to 45Mt.

The exploration licence MV-019149 comprises 6664ha of the Noyon Coal basin with 43270ha remaining as exploration licence 12600X.

Mining licence Khar Servegen MV- 019149 is situated adjacent to the Guildford Mining licence MV-017162 that comprises Baruun Noyon Uul (BNU) mining operations.

KS MV- 019149 includes three mining areas, comprising KS North, KS Hinge and KS South.

The firm plans to begin mining at Khar Servegen in 2016, targeting low strip ratio coal and staged development will take place targeting areas within the license, including KS Hinge and KS South.

Through expansion of existing operations and the development of satellite pits in existing licences, the firm intends to produce 2Mt in 2016 and 3Mt in 2017 and targeting a sustainable 5Mt by 2020.

In November 2014, MRAM approved Guildford Coal’s proposed capacity expansion at the Baruun Noyon Uulcoal (BNU) mine in Noyon Soum of the Umnu Gobi province.


Image: Guildford Coal subsidiary Terra Energy has received a mining licence Khar Servegen MV- 019149 in Mongolia. Photo: courtesy of Guildford Coal Limited.