Modun Resources says a mining licence for its Nuurst project should be granted by April after the Mineral Resources Authority of Mongolia (MRAM) approved conversion of the project’s exploration licence to a mining permit.
The application is now with the newly-formed Minerals Resource Council which is responsible for reviewing the detail of mining licence applications and making recommendations to MRAM.
The 489 million tonne Nuurst resource is in central Mongolia, 6km from existing rail infrastructure connecting to the Chinese border. In November 2012, Modun secured an exclusive deal with Tennant Metals which will see the commodity trader purchase 100% of the coal produced at Nuurst.
The Bluefield Group is continuing its preparation of a JORC-compliant coal estimate at the site which is due for announcement soon.
The company’s managing director Rick Dalton has welcomed the Mongolian government’s US$1.5 billion fundraising program from bond issue, which it says will be used to further develop rail and road infrastructure. “The bond issue was heavily oversubscribed by foreign investors in a positive sign for foreign investment into Mongolia.
“We welcome the funds being used for mining investment and electricity production which demonstrates the Mongolian government’s commitment to supporting the growth and development of the mining industry,” he said.