Xstrata enters option agreement

XSTRATA Coal has entered an alliance agreement with Erdene Gold giving the coal miner first option over 75% in a Mongolian project.
Xstrata enters option agreement Xstrata enters option agreement Xstrata enters option agreement Xstrata enters option agreement Xstrata enters option agreement

Peter Coates

Staff Reporter

Erdene, based in Novia Scotia, is a diversified mineral exploration company with a number of exploration projects in Mongolia, including both coal and base metals.

The agreement is focused on the joint development of metallurgical and thermal coal projects and gives Xstrata Coal access to Erdene projects. Xstrata can also share with Erdene its extensive knowledge of coal project feasibility, development and operations to jointly pursue development opportunities.

Due to its proximity to China and its growing demand for commodities, the extensive mineral deposits in Mongolia are expected to be rapidly developed in the coming years.

“China’s demand for coal is expected to remain high for the foreseeable future. Mongolia’s largely untapped coal resources, its proximity to China and the Government’s adoption of western mining legislation make pursuit of coal resource development opportunities in Mongolia a logical step,” said Xstrata chief Peter Coates.

“Xstrata Coal’s new alliance with Erdene provides Xstrata access to Erdene’s portfolio of projects in Mongolia while sharing with Erdene our management expertise in developing and operating highly successful mines,” Coates added.

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