A new dry coal handling facility (DCHF) has been commissioned at South Gobi Resources’ flagship Ovoot Tolgoi mine in southern Mongolia. 1 The facility has the capacity to annually process 9 million tonnes of run-of-mine (ROM) coal. Its 300-tonne capacity dump hopper will receive the ROM coal to feed a rotary breaker and screens that will size the coal to a maximum of 50 millimetres and reject any oversize ash.

“The new dry coal-handling facility will improve the quality of our coal and enable us to achieve better product consistency,” says South Gobi’s president 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.”

An upgrade to the facility later this year will add a dry air separation feature as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending.

The company has also announced a 58% increase in 2011 coal sales compared with 2010 totals. South Gobi sold 4.02 million tonnes of coal last year, as compared to 2.54 million tonnes in 2010. Production figures have also shown significant increases, with 4.57 million tonnes of coal production against the previous year’s 2.79 million tonnes showing a 64% growth.

South Gobi Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia’s South Gobi region.

The 106.8 million tonne Oyoot Tolgoi resource is 320km southwest of the provincial capital and about 40km north of the China-Mongolia border, making it the closest Mongolian coal resource to China. The company plans to supply a wide range of coal products to Asian markets.

www.southgobi.com

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