Envidity Inc launches coal gasification project in Mongolia

Sunday, 28 Aug 2011

Retired US Army General Wesley Clark chairman of Envidity Inc announced the commitment of funds to launch a USD 1 billion Mongolian Underground Coal Gasification-Gas to Liquids project. The project will transform low quality deeply embedded, underground coal into high quality fuel, and is a first step towards fuel independence for Mongolia.

In August of last year, Envidity entered into an exclusive agreement with operator Live Energy Group LLC and Shine Shivee LLC, to transform economically stranded coal, that is over 150m deep in the strategic Shine Shivee license areas, into domestic fuel for Mongolia. On July 22 of this year Envidity exercised that option.

Envidity’s project has been recognized and encouraged by Senior Mongolian Government officials as a viable way to tackle the issue of Mongolian fuel self-sufficiency given its potential to produce 1,000 barrels per day of synthetic diesel that will satisfy 10% of local demand within 24 months, and 15,000 barrels per day within 60 months.

The project will provide Mongolia with the largest clean-energy technology transfer in its history, offering a source of clean and reasonably priced fuel and electricity for years to come. The project is expected to create 3,000 construction and 150 permanent higher salaried jobs for the Mongolian people. The project has the potential to establish over 7 commercial plants in the next 15 years and will bring as much as USD 7 billion in investment.

Mr Clark said that “Within two years of launching the Envidity project, domestic production of fuel from Mongolia’s coal reserves will begin. With the Envidity project at full production, the Mongolian people will no longer need to line up at gas stations for a 20 liter quota of high priced foreign supplied fuel. Mongolia will become a fuel exporter in the future.”

TVN Corporation shares soar on Mongolian coal results

Saturday, 20 Aug 2011

TVN Corporation shares have soared on the back of the full coal drilling results from the Nuurst Thermal Coal Project in Mongolia.

The coal seam development has now been extended to over 1.6 kilometres, with a third significant 102.6 meter coal sequence intercepted. The cumulative down hole coal seam thickness is 81.4 metres thick.

These results follow hot on the heels from the 192 metres thick coal sequence announced at the end of last month, which has multiple seams including a single seam of a substantial 115.5 metres thick.

To continue to progress the project, TVN Corporation has also placed 90 million shares at AUD 0.04 to raise AUD 3.6 million, to accelerate exploration targeting a JORC Resource.

The company will also use the funds to review the acquisition of further coking and thermal coal opportunities in Mongolia.

(sourced proactiveinvestors)

Hunnu Coal gets mining licence at Tsant Uul project in Mongolia

Monday, 18 Jul 2011

Hunnu Coal announced that the Mineral Authority of Mongolia has granted a mining licence MV - 016872 for the Tsant Uul Project, covering total area of 69,233 hextare.

Key points
1. Targeting commencement of mining in the last quarter of 2011.

2. Targeting initial production of 1.5 million tonnes of coal in 2012 and 3 million tonnes in 2013.

3. Owner operator mining fleet currently being purchased with initial purchases including six CAT 773 Dump Trucks and a Hitachi 1200 excavator. Additional purchases underway.

4. Exploration and development drilling now totaling 56,101 metres of diamond drill core and RC since discovery of the Tsant Uul Deposit in middle of 2010.

5. Study for a coal haulage access road from Tsant Uul Mine site to the existing coal haulage road has been completed and is currently under Government approval process.

6. An update of the Tsant Uul Project JORC Resources is being completed. The Company's exploration target for the Tsant Uul Project is for 150 million tonnes to 200 million tonnes.*

7. Final test work and off take agreements progressing well.

8. New Coal discovery 7 kilometer north of the Tsant Uul Deposit, with drilling currently underway.

The Tsant Uul Project mining licence has been granted for an initial term of 30 years with an option for twenty years extension twice, providing a total of 70 years of mining operations.

The Tsant Uul Project is located in the World Class South Gobi Coal Province of southern Mongolia, approximately 40 kilometer to the south of the giant Tavan Tolgoi Coking Coal Deposit. The Tsant Uul Project has a current JORC compliant resource of 90 million tonnes, with 61 million tonnes in the Measured and Indicated categories.

Noble Group seeks more Mongolia coal deals

Thursday, 03 Mar 2011

Noble Group Ltd the Hong Kong based supplier of energy, food and mining commodities, sees Mongolia as its next opportunity to expand in coal and build on its record 2010 profits.

Mr Ricardo Leiman CEO of Noble Group said that “We have staff looking at several opportunities in Mongolia, especially in exploration companies. Mongolia will be an area specifically for quarter two. We look at developing a similar model there to what we have in Indonesia and Australia.”

Noble won exclusive overseas marketing rights for PT Berau Coal, Indonesia’s No 5 producer, in November, adding to its Australian assets which include Gloucester Coal Ltd. The Berau deal will contribute nicely to 2011 earnings, Mr Leiman said after his company posted record annual net income of USD 606 million from USD 57 billion in sales.

Aspire Mining Ltd which explores for coal in Mongolia said that Noble bought 4.1% of its shares and is in preliminary talks on how the two can cooperate. Xanadu Mines Ltd which plans to develop coal and iron ore fields in Mongolia.(sourced from bloomberg)