Thursday, May 1, 2014

Auminco signs MoU with power supplier

PERTH (miningweekly.com) – Mongolia-focused coal developer Auminco Mines has signed a non-binding memorandum of understanding (MoU) with a Mongolian government-owned power provider for future coal supply.

Auminco was currently the target of a takeover from ASX-listed Viking Ashanti, which has already gained a 90.96% in hold in the company. Viking Ashanti was offering 61.2 of its own shares, and 20.4 of its options, for every 100 Auminco shares held.

Under the MoU, the Darkhan Thermal Power Plant (DTPP) has expressed its intent to purchase future coal from Auminco’s Berkh Uul bituminous coal project, in northern Mongolia, to fuel its expansion plans that would require some 600 000 t/y of coal, instead of the current demand of 400 000 t/y of coal.

Viking Ashanti MD Peter McMickan said on Thursday that the MoU with DTPP was an important step for the coal project.

“The fact that Berkh Uul project has been recognised by the Mongolian government as being a potential key supplier of coal to the DTPP is a significant milestone in the development of the project.”

McMickan added that Auminco’s discussions with nearby cement works and power stations had already confirmed a local industrial demand for unwashed Berkh Uul coal, owing to its low as, low sulphur and relatively high calorific value.

“This MoU provides further evidence of the potential customer base for Berkh Uul’s coal,” he said.

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