“This contract represents the first shipment of 8000t of coal from the Terra Energy managed BNU mine to be sent for supply chain and coal wash testing,” Guildford announced. Terra Energy is a subsidiary of Guildford.

“Once washed, the coal will then be delivered to the company’s preferred end users in China, who will provide further feedback on the BNU mine product.”

Guildford said the first trucks were scheduled to leave the mine on August 25 with washing to start afterwards.

Another 12,000t of coal deliveries are also expected to be made.

“The board of Guildford would like to thank all of the project stakeholders for their patience and support leading up to first sale,” Guildford managing director Peter Kane said.

“The board is excited about the further development of the BNU mine and exploring the company’s other mining licenses in the region.”

In July the Mongolian government awarded Guildford a permit to haul coal from the mine to Shivee Khuren-Ceke border crossing into China.

The BNU mine is initially targeting 1 million tonnes per annum of low ash, low sulphur hard coking coal production for the Chinese steelmaking market.