Sharyn Gol has received all government approvals to commence operations for its planned new open pit coal mine at the Shaazgait thermal coal deposit in Ulaanbaatar, Mongolia.

The green light for the company’s environmental impact assessment report comes after the recent Mineral Resources Authority nod for the project’s feasibility study.

The new opencast mine will deliver low ash, low sulfur, and high calorific value product to the local market when operational.

The company will use its existing infrastructure to expand into both regional and international thermal coal markets and plans to launch modern commercial operations before the end of 2012.

Consequently, Sharyn Gol is reviewing options for washing and exporting coal to enhance potential revenue streams in coming years.

Recent coal washability test work by Stewart Laboratory indicated that a product with 6500 kcal/kg heat value, less than 10% ash and 0.5% sulphur on all air dried basis can be produced with high plant yields.