Mongolia gives formal go-ahead for mining at Ovoot Tolgoi coal site

{mosimage}SouthGobi Energy Resources Ltd. announced Monday that it has received final government authorization to begin mining at the company’s Ovoot Tolgoi coal site.

SouthGobi Energy Resources Ltd. announced Monday that it has received final government authorization to begin mining at the company’s Ovoot Tolgoi coal site.

"We are very pleased that we now have received all the required permits to allow us to commence open-pit coal mining operations at Ovoot Tolgoi," Gene Wusaty, Chief Operating Officer of SouthGobi Energy said. "Coal sales contracts and transportation arrangements are being finalized. We are on track to begin deliveries to customers early in the third quarter of this year."

Ovoot Tolgoi is located 45 kilometers north of Mongolia’s border with China. In anticipation of large coal imports from Ovoot Tolgoi, China built a railway line to the nearby Ceke border point last year.

Mongolia has announced plans to turn Ceke Point into a full-time border crossing to allow for daily exports of Ovoot Tolgoi coal.

In anticipation of approval for mining, SouthGobi began work in January clearing the site, stockpiling topsoil, as well as providing drainage control and road construction.

mongolia-web.com