Mongolia Energy Corp to commence China coal shipment

Monday, 05 Dec 2011

Mongolia Energy Corporation Limited announced that it has completed construction of the 311 kilometers Khushuut Road at the beginning of November 2011. It was successfully accepted by the State Commission Inspection Committee made up of 25 members on November 6th 2011.

MEC is expected to receive the final conclusion permission in writing on 28 November 2011. Once it has been received, MEC will commence coal shipment exporting to China. MEC is the first mining company to successfully construct the longest hard-surface paved road for coal transport in Mongolia.

The Kliushuut Road has a distance of 311 kilometers in length, stretching from Khushuut mine site to Yarant (Mongolia) and Takeshensken border (Xinjiang). The road crosses five sub provinces of Kliovd (Darvi, Tsetseg, Altai, Uyench, Bulgan). There are 17 bridges and more than 200 waste water pipes built along the Road.

The Kliushuut Road was built and commissioned for a payload of up to 110 tones. A completion of a paved road has a direct positive impact to reduce the operating costs to the mining business. What used to be a gravel travel road which takes over 8 hours to travel to the border will now only take 4 horns.

The road project being the biggest infrastructure development project for Khovd province, and one of the large scale road investment projects by privately owned mining enterprise in the Mongolia history. It provides many social benefits to the local community. Not only does it provide an efficient mode of transportation for all the local residence, the road project itself also created hundreds of jobs for local provinces and a considerable income for provinces and state.

Coal trucks traveling on paved road will minimize a negative environment impact to the area by minimizing the potential dust which normally caused by coal transport on gravel roads. In addition, a paved road provides a safer road environment for coal shipments.

MEC being the first is now a role model for all mining projects in Mongolia to build the infrastructure (road) prior to shipping minerals for export. It's such an environmentally friendly decision which is praised by many Mongolians and government bodies.

Mr James Schaeffer Jr CEO of MEC said that "The commission of the Khushuut Road indicates a milestone in our coking coal exporting and our team will continue our efforts in all aspects to expand our Khushuut operations."