Source: Business Mongolia, Mining

The government awarded the Australian firm Macmahon Holdings a five year, USD 500 million contract for mining operations at the Tavan Tolgoi Eastern Tsankhi coal project.  Macmahon will team up with the German firm BBM Operta Group on the project beginning in January.

“Our operations in Mongolia pave the way for developing a long-term business in the region and will see our world class mining expertise on show through this project,” said Bowen.

Mining at the 7.5 billion ton Tavan Tolgoi deposit will start in January next year at a rate of three million tons a year and 15 million tons once it reaches full production. Operations will open with existing client-owned equipment.  MacMahon's contract with project owner Erdenes Tavan Tolgoi will see the Australian project house and its joint venture partner BBM Operta conduct large-scale opencut mining operation at the site.