Washed Coking Coal Business to Drive More Robust Growth
Boost Competitiveness in International Market
HONG KONG, June 13, 2011 /PRNewswire-Asia/ -- Mongolian Mining Corporation ("MMC", or together with its subsidiaries, the "Group"; HKEx: 975), is pleased to announce that the first module of the Coal Handling and Preparation Plant (the "CHPP") at its Ukhaa Khudag coking coal mine has been successfully commissioned by the State Professional Inspection Authority of Mongolia on 10 June 2011 as scheduled.
The CHPP, which is the first of its kind in Mongolia, comprises three processing modules and a single product handling system. Designed to operate for a minimum of 6,000 hours per year, the first module of the CHPP is capable to process around 5 million tonnes of run-of-mine coal per annum. By processing raw coking coal, it will produce washed hard coking coal for export with 8-10% ash content as well as thermal coal for on-site power plant's use.
The trial run of the CHPP has started on 12 May, 2011 and the Company plans to reach full production capacity of approximately 900 tonnes as received coal per hour in June 2011. Construction of the second module, which will double the processing capacity of the plant is already underway and is expected to be completed and commissioned by the fourth quarter of this year.
The new CHPP will enable the Company to enhance its UHG brand, reduce logistics costs, expand the end-user customer base and further boost its competitiveness in the international market.
The design, procurement and construction management of the CHPP was undertaken by Sedgman Limited, Australia. The plant was constructed within a year and the capital expenditure for the first module totaled at approximately USD111.6 million. The CHPP was designed to maximize the coking coal product yield and utilizes modern equipment from well-known brands from Australia, USA, Europe, South Africa and China. The CHPP will operate on a two 12-hours schedule on a roster of around 96 staff.
About Mongolian Mining Corporation (MMC)
Mongolian Mining Corporation (MMC; HKSE Stock Code: 975) is a high-quality coking coal producer and exporter in Mongolia. It owns and operates an open-pit Ukhaa Khudag coking coal mine located within the Tavan Tolgoi coal formation in South Gobi, Mongolia.
To learn more about the Company, please visit MMC's website at: www.mmc.mn
For further enquiries, please contact Hill and Knowlton Asia Ltd.
| Daphne Chan | Kevin Law |
| Tel: +852-2894-6217 | Tel: +852-2894-6219 |
| Email: mmc@hillandknowlton.com.hk |
