Hunnu to acquire another Mongolian coal project

Brisbane (Energy Publishing) - ASX-listed Perth-based Hunnu Coal has been granted an option to acquire an 80% interest in the Erdenes thermal coal project in the Dornogobi province of south eastern Mongolia.

There are two existing coal deposits in the surrounding area - the Khashaat Khudag coal deposit, 8km to the north east of the Erdenes project, hosts 140-180Mt of coal with an average calorific value of 5,500kcal/kg while the Ulongiin Ukhaa coal deposit 4.5km to the south hosts 80-90Mt of coal, company said.

Hunnu has an exploration target of 40-60Mt of coal for the Erdenes project based on previous exploratory work.

The project is 56km from a bulk commodity loading rail facility at Bor Undur on a major Mongolian rail line. Hunnu has a number of other coal projects in Mongolia.