Xanadu Mines Ltd. has recently acquired the Khavtsgait coal project through its joint venture company with Noble Group, Enkhgoviin Chuluu LLC.

“The Khavtsgait acquisition further underpins the core strategy of [Enkhgoviin]—to identify and develop significant metallurgical coal opportunities, close to existing structure, that will meet anticipated current and future demands from China and North Asian markets,” said Chairman Brian Thornton.

The project is located in the Khuvsgul province of northern Mongolia approximately 60 kilometers east of provincial capital Murun and 230 kilometers west of the established rail spur at Erdenet. The exploration license overlies a coal deposit similarly aged to other projects in northern Mongolia, such as the Ovoot coking coal project owned by Aspire Mining Limited. The basin is known to hold hard coking coal deposits. The company recognized the Khavtsgait opportunity as part of its regional reconnaissance exploration project conducted by Enkhgoviin's experienced geologists. Initial exploration indicated materials at Khavtsgait as similar with EC's newly discovered Nuurstei coking coal project located approximately 60 kilometers to the west. The deal is Enkhgoviin's third major metallurgical coal acquisition in Mongolia since its creation in March 2011.

Xanadu is a Mongolian exploration company with coal assets Galshar in addition to Khar Tarvaga.