Guildford Coal has confirmed a deposit of 63.1 million tons of coal at its South Gobi project. The deposit potentially holds coking coal grade supplies, a key ingredient for steel production.

The estimates includes 38.2 million tons of indicated materials, while 24.9 million tones of inferred. The project also benefits from its close proximity (60 kilometers) to the Chinese border town of Ceke. This year Mongolia surpassed Australia in its coal exports to China, and Mongolia will continue to benefit from its cheaply priced product.

Drilling will continue on other key areas of interest at the South Gobi project for its central, west, and east pits.