The Mongolian Mineral Authority has granted a mining licence to ASX-listed Xanadu Mines for its Khar Tarvaga coal project.
The project covers some 83.5 km2 in the Tov Province in eastern Mongolia. The Khar Tarvaga project mining licence has been granted for an initial 30 year term, with an option for two 20-year extensions, providing for a total of 70 years of mining operations.
Drilling at the project has previously identified a significant sub-bituminous coal resource in excess of some 327-million tons, of which more than half is in indicated status and described as being amendable to mining by opencut methods.
Xanadu chairperson Brian Thornton noted that the company had completed an extensive technical scoping study as part of its development strategy and to assist in identifying potential developers and end-users for the project.
“Now with the certainty of a 30-year mining licence and Mongolia’s growing annual fuel deficit of more than $800-million, Xanadu will redouble its efforts to engage potential technical and equity partners to develop the project.”
Xanadu currently has three coking coal projects in a joint venture with the Noble Group, and has two wholly owned thermal coal assets. In addition, the company was also progressing exploration of its highly prospective suite of licences for gold in the south east Gobi and copper at its Sharchuluut project.