Source: Mining Weekly              Date: 25 May, 2011

Mongolian coal developer Hunnu Coal has paid AUD40 million for Rio Tinto’s 70% stake in the Altai Nuurs coal joint-venture project in the Gobi Altai province in Mongolia. The project has an exploration target of between 250 million tons and 500 million tons and comprises six exploration licenses over 46, 212 ha, as well as four mining licenses totaling 202 ha. “This is a major acquisition for Hunnu Coal and represents a clear future growth path for the company,” the company said in a statement.

The explorer has over 413 million tons of Joint Ore Reserves Committee- (JORC) compliant coal resource across its project areas, and has become one of the major coking coal and thermal coal explorers in Mongolia. Hunnu said in a statement that it would now start JORC modeling at the Altai Nuurs project, with a major drilling program planned for the remainder of 2011. Around 19,437 meters of drilling has already been completed, with some 107 reverse circulation and core drill holes.

Hunnu’s acquisition of the Altai Nuurs project was part of its acquisition drive to become the major coal developer in Mongolia, along with its strategic investment partner Banpu PCL. The developer was planning to move into production during this year.