COAL miners in Mongolia are increasing output to satisfy growing demand from its neighbour China; however, transport issues in southern Mongolia and at the border crossings have hindered growth.

SOUTHGOBI Resources has entered into an investment agreement with Beijing De Rong Tai Investment Co Ltd (BDRT) in connection with development of the Ceke Port Eco-friendly Bonded Logistics Park project. Proceeds from BDRT’s equity investment will be used to construct the park, which will be at Ceke inland port on the Mongolia-China border.

CENTERRA Gold expects to restart negotiations with the Mongolian Government regarding the Gatssurt Gold Project after receiving results of a feasibility study. The study incorporates results from the technical and economic studies initiated in 2016, further optimisation studies completed in 2017, updated capital and operating costs and the current Mongolian tax and royalty regime.

FOUR years after opening Mongolia’s first wind farm, Salkhit, Newcom has opened the country’s second wind farm, Tsetsii. Completion of the project is testament to the co-operation of Newcom and SB Energy, a subsidiary of Japanese conglomerate Softbank Group Corp.

TERRACOM Limited has reached the annual name plate capacity of 1.5 million tonnes from its Baruun Noyon Uul (BNU) Coking Coal Project in southern Mongolia. Short and long-term contracts have underpinned the coal produced at BNU as well as the company’s Blair Athol Thermal Coal Project in Australia.

SIEMENS is undertaking the engineering, design, production and supply of the electrical equipment for the conveyor system at Oyu Tolgoi Copper-Gold Project. The delivery will comprise the new conveyor system with gearless and conventional drives from thyssenkrupp Industrial Solutions.

AS Turquoise Hill Resources gears up to begin underground production from the Oyu Tolgoi (OT) Copper-Gold Project in 2020, it expects the open pit operations to more than double gold production during 2018. The Rio Tinto controlled company has forecast production of 240,000 to 280,000 ounces with operating costs dropping by about 2.8%.

ASPIRE Mining and its subsidiary Northern Railways LLC have entered into a binding Memorandum of Understanding with China Gezhouba Group International Company Limited (CGGC) to advance the Erdenet-Ovoot Railway Project as part of the Northern Rail Corridor. CGGC has agreed to complete the second and final stage of a bankable feasibility study by March 31, 2018.

ASPIRE Mining believes A$16.5 million raised in a fully underwritten rights issue will enable it to expedite development of the Nuurstei Coking Coal Project. The company aims to put the 90%-owned project into production within 18 months.

THREE new large porphyry centres have been confirmed under shallow cover at Xanadu Mines’ Kharmagtai Copper-Gold Project in southern Mongolia. Recent drilling of high-potential copper-gold and gold targets has confirmed the centres.

SOUTHGOBI Resources has entered into a loan agreement and supplementary loan agreement with Beijing Jin Rui Tian Chen Asset Management Co Ltd to finance the purchase of mining equipment. The company says the equipment will increase production capacity at its Ovoot Tolgoi Coal Project.

ERDENE Resource Development Corp has acquired a 51% interest in the Ulaan exploration licence, which is immediately west of its Bayan Khundii Gold Project. Erdene has an option to acquire up to 100% of the 178 hectare project.

ASPIRE Mining has received an expression of interest to fund a modular Coal Handling and Processing Plant (CHPP) at Nuurstei Coking Coal Project. The interest has come from ODDO BHF, a German private bank and financial services group.

XANADU Mines plans deeper drilling at Kharmagtai Copper-Gold Project with the aim of extending high-grade tourmaline breccia mineralisation identified in recent drilling. The discovery of additional near-surface high-grade copper-gold mineralisation will add to the existing resource and move the project into economic viability.

TURQUOISE Hill Resources continues to make good progress with underground development at the Oyu Tolgoi Copper-Gold Project in southern Mongolia. By the end of 2016, the underground project workforce had grown to more than 2000 people with continued growth expected to peak in 2018.

ASPIRE Mining’s Mongolian rail subsidiary Northern Railways LLC has signed two recent agreements that are likely to enhance the economic potential of the Erdenet to Ovoot Railway, which will form part of the proposed Northern Rail Corridor in Mongolia’s north.

AN updated estimate for SouthGobi Resources’ Ovoot Tolgoi Coal Project has resulted in an increase in resources. The deposit now has measured resources of 201.9 million tonnes, indicated resources of 100.3 million tonnes and inferred resources of 89 million tonnes.

WITH hard coking coal from TerraCom Limited’s Baruun Noyon Uul (BNU) project flowing to China as part of a 5.5 year offtake agreement with the Kingho Group, the company is focusing on advancing plans to develop a coal handling and processing plant (CHPP) at the project.

Mining is still the leading contributor to Mongolia’s exports, according to the Ministry of Mining and Heavy Industry. In 2016 the sector was expected to account for 85% of exports, 63% of industrial products, 18% of GDP and a quarter of national revenue.

PROPHECY Development Corp has signed two coal sales and purchase agreements to sell 16,000 tonnes of coal from its Ulaan Ovoo Coal Project in northeast Mongolia. The purchasers are Erdenet Mining Corporation for 10,000 tonnes and Selenge Energo Heat Plant for 6000 tonnes.