Hunnu Coal will acquire a 60% interest in a Mongolian coal mine, which is expected to start production during the latter part of this year.
The Unst Khudag coal mine consists of two exploration licences and a mining licence covering around 59 000 ha, and is located about 200 km from an operational multi-party coal loading facility on a rail line.The project also has an approved mining plan and feasibility study for mining a proposed 98,7-million tons of coal, starting by the end of this year.
Hunnu said in a statement today that it was currently undertaking a detailed operational review of the Unst Khudag mine, with particular attention to qualifying the coal tonnage and coal quality, as well as reviewing existing coal test work and bulk sampling results.
Hunno noted that the acquisition of the Unst Khudag project would quickly move the company from an explorer to a near-term producer. Further, Hunnu was continuing to assess a number of additional acquisition opportunities to assist in this target.