BN-UHG Heavy Haul Road and Truck Maintenance Workshop Commissioned
HONG KONG, Dec. 4, 2012 /PRNewswire/ -- Mongolian Mining Corporation ("MMC", or together with its subsidiaries, the "Group"; HKEx: 975) is pleased to announce that the Group has completed the construction of important transportation infrastructure and logistics facilities, including a 32-km heavy haul road between the Baruun Naran ("BN") and Ukhaa Khudag ("UHG") mines ("BN-UHG road") and the Truck Maintenance Workshop ("Workshop") facility at UHG. Both the BN-UHG road and Workshop were successfully commissioned by the relevant government authorities on 30 November 2012.
MMC began construction of the BN-UHG road in April 2012, and completed construction work in October 2012. The total capital expenditures for the BN-UHG road project amounted to approximately USD 23 million. With an estimated annual throughput capacity of around 10Mtpa, the BN-UHG road has been built to serve as the reliable connection through which MMC will transport coal from the BN mine to the coal processing facilities located at the UHG mine. The washed products will be exported to customers using the existing UHG-GS paved road.
The Workshop facility, which was built in less than 12 months with capital expenditures of approximately USD 7 million, was designed to provide services and maintenance support to 300 double-trailer heavy haul coal trucks currently owned and operated by MMC. This facility is comprised of a 4,300 square meter working area with five bays -- each capable of servicing five trucks per day -- as well as maintenance shops, a spare parts warehouse, a training facility and office space. The Workshop is expected to further improve the Group's efficiency in its transportation operations by increasing the availability and utilization rate of its coal trucks and the overall safety and reliability of its trucking operations.
Dr. Battsengel Gotov, Chief Executive Officer of MMC, said: "The completion of these important infrastructure facilities demonstrates our continued commitment to developing our coal transportation and logistics infrastructure, which is an essential part of our integrated operational platform. The established transportation link between the BN and UHG mines will enable us to develop the BN mine in synergy with our UHG mine operations, thus creating the utmost value for our shareholders."
About Mongolian Mining Corporation (MMC)
Mongolian Mining Corporation (MMC, HKEx: 975) is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates an open-pit coking coal mine at the Ukhaa Khudag ("UHG") deposit located within the Tavan Tolgoi ("TT") coal formation, as well as the Baruun Naran ("BN") coking coal deposit, both located in South Gobi, Mongolia.
MMC was listed on the HKEx in October 2010, and was selected as a constituent stock of the FTSE Hong Kong Index in March 2012. To learn more about the Company, please visit MMC's website at: www.mmc.mn
