Coal miner SouthGobi Resources Ltd said its unit in Mongolia has received a mining license for its Soumber Deposit, located to the east of the company’s flagship Ovoot Tolgoi Mine. The 10,992 hectare mining license is granted for 30 years with an option for two 20-year extensions, SouthGobi added.
“Soumber will likely have an integrated coal processing facility and will require around two years of development for first clean coal production,” Chief Executive Alexander Molyneux said in a statement. The company plans to complete a pre-feasibility study on Soumber and include the inaugural reserve report in 2012.
The Soumber Deposit had 61.4 million tonnes of measured and indicated resources and 65.8 million tonnes of inferred resources, as per an independent resource estimate in January, the company said.
SouthGobi Resources, which owns the Ovoot Tolgoi Mine and two development projects in Mongolia, sells metallurgical and thermal coal to customers in China — one of the largest consumers of coal in the world. Shares of the company closed at C$10.70 Tuesday on the Toronto Stock Exchange.