SouthGobi Resources commissions dry coal handling facility at Ovoot Tolgoi Mine
SouthGobi Resources (TSE:SGQ) (HK:1878) announced Monday it has commissioned and started-up the dry coal-handling facility at its Ovoot Tolgoi coal mine in southern Mongolia.
The facility has a capacity to process nine million tonnes of run-of-mine coal per year. It includes a 300-tonne-capacity dump hopper, which will receive run-of-mine coal to feed a rotary breaker, and screens that will size coal to a maximum of 50 millimetres, rejecting oversize ash.
"The new dry coal-handling facility will improve the quality of our coal and enable us to achieve better product consistency," said president and CEO, Alexander Molyneux.
"It represents the first step towards more integrated processing at Ovoot Tolgoi, which will create more value than mining and selling raw coal."
The company said the facility will be upgraded this year to include dry air separation, as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending.
SouthGobi Resources is focused on the exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia’s South Gobi region.
The company’s flagship coal mine, Ovoot Tolgoi, produces and sells coal to customers in China, with SouthGobi planning to supply a wide range of coal products to markets in Asia.
Total proven and probable surface coal reserves calculated at Ovoot Tolgoi as of December 11, 2010, were estimated to be 106.8 million tonnes. Approximately 59 percent of the reserves were classified in the proven reliability or assurance category, with the remaining 41 percent in the probable category.
In January, the coal supplier said it sold more than four million tonnes of coal in 2011, 58 percent more than it did in 2010.
In the fourth quarter, the company produced 1.34 million tonnes, resulting in full year 2011 output of around 4.57 million tonnes - up 64 percent from a year earlier.
SouthGobi's stock on the Toronto Stock Exchange is up more than 19 percent so far in 2012.
The facility has a capacity to process nine million tonnes of run-of-mine coal per year. It includes a 300-tonne-capacity dump hopper, which will receive run-of-mine coal to feed a rotary breaker, and screens that will size coal to a maximum of 50 millimetres, rejecting oversize ash.
"The new dry coal-handling facility will improve the quality of our coal and enable us to achieve better product consistency," said president and CEO, Alexander Molyneux.
"It represents the first step towards more integrated processing at Ovoot Tolgoi, which will create more value than mining and selling raw coal."
The company said the facility will be upgraded this year to include dry air separation, as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending.
SouthGobi Resources is focused on the exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia’s South Gobi region.
The company’s flagship coal mine, Ovoot Tolgoi, produces and sells coal to customers in China, with SouthGobi planning to supply a wide range of coal products to markets in Asia.
Total proven and probable surface coal reserves calculated at Ovoot Tolgoi as of December 11, 2010, were estimated to be 106.8 million tonnes. Approximately 59 percent of the reserves were classified in the proven reliability or assurance category, with the remaining 41 percent in the probable category.
In January, the coal supplier said it sold more than four million tonnes of coal in 2011, 58 percent more than it did in 2010.
In the fourth quarter, the company produced 1.34 million tonnes, resulting in full year 2011 output of around 4.57 million tonnes - up 64 percent from a year earlier.
SouthGobi's stock on the Toronto Stock Exchange is up more than 19 percent so far in 2012.
Comments
Post a Comment