MELBOURNE -(Dow Jones)- Hunnu Coal Ltd. (HUN.AU) said Monday it has bought Rio Tinto PLC’s (RIO) controlling 70% interest in the Altai Nuurs coal joint venture project in southwestern Mongolia for a A$23 million cash payment on signing of the deal and a further A$17 million in deferred payments.
– The Altai Nuurs project is located in the south western Gobi Altai province of Mongolia, about 250 kilometers by road to the Burgastai border crossing point into China and 550 kilometers to the China rail network.
– The project comprises six licenses exploration licenses totalling 46,212 ha and four mining licenses totalling 202 ha, with an exploration target of between 250 million metric tons and 500 million tons.
– Preliminary test work indicate the coking coal parameters compare favorably with similar coking coal projects elsewhere in the world.
– Hunnu said it intends to continue its exploration and acquisition efforts and, with the support of its strategic partner Banpu PCL, move from exploration to mine development and then into production all within this year.