Mongolia Business and Mongolian Daily Business News

Mongolian Energy Corporation has signed six year agreement worth USD 206 million with Leighton Holdings Limited according to Bloomberg. 3 million tonnes of coal is expected to be mined and production will likely to start from the second quarter of the year 2010. The agreement allows for production to rise to 8 million tons of coal a year. Coal reserves of Khushuut are estimated at 460 million tonnes and can generate USD 240 million in revenue annually.

“I am excited that Leighton Asia now has two significant mines in operation in Mongolia. Our partnership with MEC on the Khushuut coal mine is the second mine we have commenced this year and will involve a similar level of work to our existing contract at the Ukhaakhudag coal mine in the South Gobi region of Mongolia,” Leighton Asia Managing Director Hamish Tyrwhitt said.
MEC Chief Executive Officer James Schaeffer Jr. said the MEC-Leighton cooperation represented a major step towards the commencement of mining operation at the Khushuut coal mine. Schaeffer also stated that the bulk product sample of the premium coking coals were fully scale tested and the Khushuut brand of coking coal will be sold to the western part of China, where coking coal of such premium quality is in great and growing demand.

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