MONGOLIA - Energy Resources opens new processing plant wing

The second wing at Energy Resources’ mineral processing plant at the Ukhaa Khudag (UHG) coal project has opened, increasing annual production to up to 15 million tonnes. 

Energy Resources is the Mongolian subsidiary of Hong Kong-listed Mongolian Mining Corporation (MMC), a high-quality coking coal producer and exporter. It began mining at the UHG site in 2009 after the quickest ramp-up of mining operations in Mongolia. The 2960 hectare UHG site hosts 497 million tonnes of JORC-compliant measured and indicated coal resources.

The first wing of the processing plant opened in June 2011, becoming Mongolia’s first coal handling and preparation plant, with government approval for the US$91 million second wing granted in December.

Energy Resources says the new section of the plant will produce 850 tonnes of processed coal per hour, or about 5 million tonnes each year. “A third wing would allow Energy Resources to become an exporter of processed coal,” says the company’s chief executive officer Dr Battsengel Gotov.

MMC announced a 71.1%, or US$233 million, revenue increase in the first six months of 2012 ended 30 June, compared with the same period in 2011.

As well as Ukhaa Khudag, MMC also owns the 4486 hectare Baruun Naran deposit within the South Gobi region. The company aims to contribute to the social and economic development of Mongolia through integrated coal mining operations, value added production and premium quality coal products.

www.mmc.mn