The test work, conducted at the request of the Mongolian government, saw an increase in calorific value achieved to 5648kcal/kg from a 4178kcal/kg for the raw coal sample.

“We are very excited about these test results and our ability to achieve significant improvements in coal quality via a very cost effective beneficiation process,” managing director Rick Dalton said.

“The Nuurst coal briquettes bring our coal up to the Newcastle thermal coal energy benchmark, ensuring a far more efficient burning coal.

The improvements in coal quality were achieved via a cost effective beneficiation process and ensure a far more efficient burning coal. The tests were independently conducted.

“These results are significant as we seek to work with the Mongolian government to develop a low cost, high energy and low emission coal to help improve the air quality in Ulaanbaatar,” Dalton said.

“Nuurst briquettes have the potential to be of great assistance in helping the Mongolian

Government achieve their targets for pollution reduction in Ulaanbaatar and we remain positive about the ongoing discussions we are having with the Government in relation to their clean coal initiatives.”

Modun also had several discussions with the Mineral Resources Authority of Mongolia over the past few weeks as part of the approval process for the mining licence which Modun expects to receive after the completion of the administrative process.

The Nuurst thermal coal project is in central Mongolia on a 34.5sq.km licence area 120km south of the capital, Ulaanbaatar.

In November, Modun announced a 478 million tonne JORC-compliant coal resource at Nuurst.