Auminco is focused on development and taking the Berkh Uul project into production. It is a project with a low-capital and operating cost that comes with a 38.3 million tonne JORC thermal coal resource.

It is close to established rail infrastructure and offtake customers, along with good prospects for moving to early coal production, according to Auminco. This project is expected to remain a focus for the merged entity.

In relation to a separate anthracitic coal project at Khongkor Zag, due to the complex geology, which is not unusual for this type of coal, more work has to be completed in order for this project to be progressed.

Auminco said it would pursue this as well as our other coking coal prospects in the medium term.

Auminco CEO Matt Morgan and executive director Bayar Tsagdaa have both worked in Mongolia to negotiate offtake agreements with coal buyers for Berkh Uul.

“Once they assume their executive positions within Viking, it is anticipated that feasibility work will begin on Berkh Uul targeting a project with low capital and operational expenditure and coal production by 2015,” Auminco chairman Andrew Whitten said in its target statement.