Hunnu aims to produce coal by 2012

MONGOLIAN explorer Hunnu Coal could start mining at its Tsant Uul project in the South Gobi coal province as early as next year after receiving a mining licence for the project.

Lauren Barrett

The Tsant Uul project licence, which covers 69,233 hectares of land, has been issued for 30 years with the opportunity for two 20-year extensions.

The licence granted by the Mineral Authority of Mongolia puts Hunnu one step closer towards its goal of exploring and developing coking coal and thermal coal deposits in southern Mongolia.

Tsant Uul has a JORC-compliant resource of 90 million tonnes and a targeted production of 1.5Mt of coal for 2012.

Since the discovery of the Tsant Uul deposit in 2010, 56,101 metres of exploration and development drilling has been undertaken.

A completed study detailing a coal haulage access road from Tsant Uul minesite to an existing coal haulage road is under government review.

Tsant Uul is close to the giant Tavan Tolgoi coking coal deposit, which is tipped to produce 15Mtpa for more than 30 years.

Hunnu ramped up development of Tsant Uul after Thai energy giant Banpu become a 12.39% shareholder through a $A45 million deal back in March.

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