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Guildford Coal Limited granted Mongolian coal haulage permit

July 4, 2014 • Mining & Resources

The Mongolian Ministry of Roads and Transport has granted Australian coal miner Guildford Coal Limited a haulage permit for the transport of coal from its Baruun Noyon Uul (BNU) Mine in the South Gobi Region of Mongolia.

Image credit: Flickr User: Clifford Smith

Image credit: Flickr User: Clifford Smith

Guildford Coal Group Managing Director Mr Peter Kane said the permit from the Ministry marked a significant milestone for the company’s wholly owned Mongolian subsidiary, Terra Energy.

“Negotiations for the approval have extended over 6 months, so we are delighted with the news. The mine is now fully commissioned and the transport of coal to China can commence,” Mr Kane said.

“The permit clears the way for coal to be exported from the Baruun Noyon Uul (BNU) Mine to Shivee Khuren, which is adjacent to the Ceke Border crossing into China. Commercial arrangements are in place for a Mongolian company to transport the coal.”

Mr Kane expressed his gratitude to the Mongolian Ministry of Roads and Transport for their efforts in facilitating the approval process, saying the BNU Mine had generated widespread interest from potential customers and investors.

“We will shortly begin the process of exporting a trial shipment of approximately 10,000 tonnes to northern China. This trial shipment is designed to confirm the down-stream logistics and processing performance,” he said.

“Final arrangements for sale will be made following processing at a facility in Ceke, Inner Mongolia with early interest already shown by companies, including Shenhua Wuhai; Taixi Wuhai; Jiuquan Iron and Steel Group (JISCO) Gansu; Qunhua Inner Mongolia and Jinda Wuhai. The company has entered into a marketing agreement with Noble to sell coal into the China market and we are confident of the demand.”

The last six month saw significant development work being undertaken on the project, boosting the company’s confidence that the transport can be undertaken in a way that is sensitive to the needs of the local communities in the area and protects the environment.

“Guildford Coal looks forward to being able to capitalise on the mine development work undertaken to date as we establish the BNU product in the market,” Mr Kane concluded.

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