Source: Mongolian Mining Corporation                    Date: 15 June, 2011

The first module of the coal handling and preparation plant (CHPP) at the Ukhaa Khudag coking coal mine of the Mongolian Mining Corporation is now ready to commence its commercial operations following formal approval issued by the State Professional Inspection Authority on June 10 as scheduled. The CHPP, comprising three processing modules and a single product handling system, is the first of its kind in Mongolia.

The first module has the capacity to process around 5 million tons of run-of-mine coal per annum, to produce washed hard coking coal for export with 8-10% ash content as well as thermal coal for the on-site power plant’s use. Trial run started on May 12 and the company expects full production capacity of approximately 900 tons as received coal per hour to be reached in June itself.

The design, procurement and construction management of the CHPP was undertaken by Sedgman Limited, Australia. The physical construction process took approximately a year. Capital expenditure totaled around USD111.6 million as originally estimated. The project involved altogether about 600 workers from over 20 different contractors and the CHPP will work on 2 by 12-hours shifts employing around 96 workers. The company has already commenced construction of the second module and expects it to be completed and commissioned by the 4th quarter of 2011.