The coking coal mine kicked off production in March, with Leighton saying it is the first large-scale operation in the country to be developed and operated to international mining standards and practices.

With the new ramp-up on the cards, Leighton’s mining contract is now worth $480 million.

“This request to expand capacity at UHG mine is testament to the strong working relationship we have with Energy Resources,” Leighton Asia managing director Hamish Tyrwhitt said.

“Together with our client we have established a commercially competitive mining operation at UHG that meets international best practices in safety and environmental management.

“Leighton Asia is now well positioned to play a significant role in the development of the Mongolian resources sector.”

The UHG mine in the South Gobi region freights coal 220km by road to China, but railway development is underway along with a 5Mtpa coal handling and processing plant.

The mine is owned by Energy Resources LLC, a private Mongolia-based company.

Leighton shares closed down 2.5% to $33.98 yesterday.