Hunnu Coal has been granted a mining license from the Mineral Authority of Mongolia for its Tsant Uul Project. The mining license numbered MV - 016872 will be valid for an area covering 69,233 hectares of land for a period of 30 years.
There is an option for extending the license for twenty years two times proving the company with a period of roughly 70 years to work the mine at Tsant Uul. The Tsant Uul Project is located in the World Class South Gobi Coal Province of southern Mongolia, approximately 40km to the south of the giant Tavan Tolgoi Coking Coal Deposit.
The Hunnu Coal Company hopes to begin mining in the last quarter of this year. With that end in mind they are already procuring mining equipment and have bought six CAT 773 Dump Trucks and a Hitachi 1200 excavator. Other purchases are being made. The company is targeting an initial production of 1.5 mt of coal in 2012 and hope to double that production to 3 mt in 2013.
Since the discovery of the deposit in mid 2010 there has been exploration and development drilling worth 56, 101 meters using the diamond drill core in the region. The company has also commissioned a study for a coal haulage access road from Tsant Uul Mine site to the existing coal haulage road. This is being considered by the government for approval.
Hunnu Coal was incorporated in Australia for the purpose of acquiring and developing coal projects in Mongolia. The Company operates in Mongolia through its subsidiary company Hunnu Resources LLC, a Mongolian incorporated company.
Through a series of acquisition and joint venture agreements, Hunnu has built a diverse portfolio of exploration tenements spread throughout the various coal basins of Mongolia. The company considers these tenements to be prospective for high quality coking and thermal coals able to be developed for both the domestic and export markets.
Hunnu Coal is positioning itself for increased demand for coal with a pipeline of unique exploration and development projects in strategic locations that will help to provide for future growth and expansion.