Coal Mining in Mongolia

Mongolia also has substantial proven reserves of coal, and annual coal production is presently about 5 million metric tons, almost all of which is used for steam and electricity generation. The country is estimated to have potential coal reserves of some 100 billion metric tons. Most of these reserves are proven but have not been developed due to a lack of infrastructure. For example, the Tavan Tolgoi deposit in the south Gobi contains over 5 billion metric tons of coking and hard coal, however it is located 400 km from the nearest rail-line. Mongolia also has potential to become a significant oil exporter.

The Tavan-Tolgoi coal deposit is unique in Mongolia for both its size, 90 km2, and the high quality of its coal. The deposit is located in the Ulannuur coal-bearing depression, 560 km south of Ulaanbaatar and 90 km east of Dalanzadgad, the administrative center of Omnogov Aimag. The deposit occurs in a large synclinal structure modified by faults and superimposed folding. The late Permian coal-bearing sequence is up to 965 m thick in the central part of the syncline, and occurs within units of intercalated sandstone, siltstone, and conglomerates. Overall, the coal-bearing sequence includes 16 coal seams ranging in thickness from 2 to 72 m. The aggregate thickness of coal beds in the central part of the structure is 163 m, occurring at a maximum depth of 945 m.

The Baga-Nuur deposit is located 110 km east of Ulaanbaatar, in the central part of the Tabunsubatuin depression, and has been mined since 1978. The deposit is linked to the Transmongolian railroad through the railroad branch line beginning at Mant Station.

The Mongolrostsvetmet Mining Corporation operates 2 coal mines and has an annual production of up to up to 200-250 thousand tons.

The Mongolyn Alt Corporation carries out coal mining activity on the Alagtogoo’s high calorie stone coal deposit in Dalanjargalan soum of Dornogobi aimag and supplies such big consumers as Power Plant of Darkhan, Erdenet Ore Dressing Plant and the Khutul Cement and Lime Factory. The company is currently developing a new project to set up a coal mine with the reserve of 51 million tones within the Alagtogoo coalfield. This Eldev mine is only 20 km away from the railway station.

Mongolyn Alt Corporation also owns the Khuut deposit exploration licence. The oil shale and coal deposit of Khuut is located in the territory of Bayanjargalan soum of the Middle Gobi Province where infrastructure is comparatively well developed. The proven reserve of the coal is equal to 190 million tones where the coal quality is similar to that of the domestic /Nalaikh, Sharyn gol, Alagtogoo/ coal mines, which seems to be a high-efficiency energy resource.

Nariin Sukhait is one of approximately 40 coal deposits presently being mined in Mongolia. Mongolia’s current annual output is estimated at approximately five million tonnes, most of which is used to generate heat and electricity. The Nariin Sukhait coal deposit is within one of three major coal-bearing basins located almost entirely on lands controlled by Ivanhoe in the Gobi region.

Ivanhoe Mines Ltd has successfully traced an unusually thick seam of high-quality coal from the adjacent Nariin Sukhait Mine onto property controlled by Ivanhoe in southern Mongolia, approximately 40 kilometres north of the Mongolia-China border. Metallurgical coal from the Nariin Sukhait Mine is being shipped to a Chinese steel mill. The coal seam, one of five conformable seams identified to date at Nariin Sukhait, has been mapped in outcrop and sub-crop throughout a major coal basin that stretches a total of 120 kilometres, east and west of the mine, on ground controlled by Ivanhoe.

All five of Ivanhoe’s initial drill-holes intercepted a single thick seam of low-ash, high-rank, bituminous coal extending from surface to depths ranging between 120 and 150 metres. This initial drilling indicated a continuous coal seam ranging in thickness from 32 to 90 metres, with an average true thickness of approximately 60 metres. The full extent of the seam’s down-dip depth remains to be determined. Drill-core samples are being analyzed to verify that the coal intercepted on Ivanhoe-controlled ground is of similar metallurgical grade to the coal being mined at Nariin Sukhait.

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