Guildford optimises production strategy

GUILDFORD Coal expects to ramp up production at its Baruun Noyon Uul (BNU) coking coal mine in Mongolia to 125,000 tonnes of coking coal per month under a new operational strategy.
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TerraCom's box cut at the BNU mine in Mongolia.

Lou Caruana

Following the discovery of a shallow coking coal “micro basin” adjacent to the existing BNU Pit 1 commissioning pit, detailed mine planning has enabled the start of mining operations in this BNU Pit 2 area.

“This operational strategy should enable the company to ramp up and achieve the goal of 125,000 tonne per month production rate, during H2 2015 which upon reaching steady state operations will be equivalent to a 1.5Mtpa annualised rate,” the company said.

Coal production and the associated overburden removal has been optimised to minimise the unit cost per tonne of coal production and is aligned with forecasted marketing and sales profiles, the company said.

The direct cash cost positive margin on the hard coking coal product is forecast to be between US$9/t and US$11/t for the last quarter of 2015.

“While the market continues to remain soft Guildford remains committed to developing its Mongolian business in the most capital and cost efficient manner,” Guildford said.

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