(EnergyAsia, August 1 2012, Wednesday) — Mongolian coal miner Sharyn Gol said it has been approved by the government to operate an open pit mine at its Shaazgait thermal coal deposit in Ulaanbaatar.
The company said it met all government conditions after completing its feasibility study and environmental impact assessment report which has been accepted by the Mineral Resources Authority.
The new mine will produce low ash, low sulphur coal of high calorific value product initially for the domestic market when it starts up later this year.
Sharyn Gol is looking to expand operations including establishing washing operations with plans for export to enhance revenue in coming years.
It said: “Recent coal washability test work, performed by the internationally accredited Stewart Laboratory in Ulaanbaatar, indicated that a product with 6,500 kcal/kg heat value, less than 10% ash and 0.5% sulphur (all air dried basis) can be produced with high plant yields. These results are consistent with Sharyn Gol being able to produce a premium export quality thermal coal.”
Sharyn Gol said it is in a strong financial position, with a US$ equivalent cash balance of $10 million and no debt.
Chairman Batkhuu Batmunkh said: “We are pleased that the development of the new mining area at Shaazgait remains on schedule, and are excited by the prospect of realising our vision of launching modern commercial operations before the year-end.”