Hunnu Coal has acquired 70% interest in Rio Tinto Minerals Altai Nuurs Coal joint venture (JV) project located in the Gobi Altai Province of south western Mongolia for a total value of $40m.

The Altai Nuurs project consists of six exploration licenses totaling 46,212ha and four mining licenses totaling 202ha with an exploration target between 250-500 million tons.

The preliminary test work indicates the coking coal parameters compare favourably with similar coking coal projects elsewhere in the world.

Previous drill results show that coal seams are developed over at least 4km strike and comprise folded and tectonised units.

The firm has planned a major drill programme, and is expecting to move from exploration to mine development and then into production in this year.