Mongolia Energy Corporation (MEC) has awarded Leighton Asia an AU$273M, six-year contract to develop and operate the Khushuut coal mine project in western Mongolia.
This is the second contract that MEC has awarded to Leighton Asia in western Mongolia. The contract is based on a mine plan which ramps up to an initial 3 mtpa of coking coal and includes 48.5 million cubic metres of material movement and anticipated ramp up to 5 to 6 mtpa or more of coking coal.
Leighton Asia is responsible for all mining activities including load and haul of waste, load and haul of coal, drill and blast, mine planning, technical support, site camp management and catering services. In November 2009, Leighton Asia was awarded the contract to provide an initial 3 million tonnes per annum mine plan study.
Leighton Asia managing director Hamish Tyrwhitt said, "This award represents an important milestone to our business in Mongolia bringing our total number of mines to three. Our work in hand at Leighton Asia has now reached a record level of AU$6B."
MEC CEO James Schaeffer Jr. said, "This award represents completion of a major step forward in the implementation of our business model as an energy and resources developer. Our selection of Leighton as mining contractor will assist in the efficient and professional development of our initial project at Khushuut and demonstrates MEC's commitment to building professional and local relationships for further projects."
MEC has, at Khushuut, 149 mt of JORC coal resources, substantially coking coal. This is within 600 ha of around 330,000 ha of MEC's concession areas in western Mongolia. MEC has upgraded a 310 km roadway for transportation of coking coal from the Khushuut Mine to Xinjiang, China.
