Coal mine prospects in Mongolia

From Global Energy Monitor

There are numerous coal mine prospects in Mongolia, many of which been only relatively recently begun to be explored and defined with modern exploration techniques. As a result of China's massive demand for coal and the high prices for quality coking coal, a coal rush is currently underway with numerous companies scrambling to get mineral exploration and mining titles in Mongolia. Many coal prospects may boost the share price of otherwise small companies but few deposits are likely to be developed in the short term.

Companies exploring for coal in Mongolia

The Australian headquartered Hunnu Coal has interests in a range of coal exploration projects in Mongolia. These are:[1]

Erdene has formed an alliance with Xstrata Coal to explore for coal in Mongolia. Under the agreement, signed in February 2006, Erdene granted Xstrata Coal the right to have "first option to enter into a joint venture and earn a 75% interest in any coal opportunity in Mongolia identified by Erdene by funding all work through completion of a feasibility study and by maintaining a minimum 5% equity position in Erdene." The company states on its website that in 2010 its "exploration efforts will focus on eight (8) newly acquired exploration licenses covering over 407,000 hectares."[2]

Articles and resources

References

  1. Hunnu Coal, "Projects", Hunnu Coal website, accessed May 2010.
  2. Erdene, "Mongolian Greenfields", Erdene website, accessed March 2011.

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