Modun Resources’ wholly-owned subsidiary Modun Resources LLC has been selected as a preferred supplier for coal briquettes by the Mongolian government in its Clean Air Initiative for the fast-urbanizing capital of Ulaanbaatar.

Modun was chosen over four other bidders by government officials via the Mongolian National Committee for Air Pollution Reduction. The tender process sought domestic and international interest to establish a cleaner fuel production facility.    

Modun’s success, say company representatives, is based on the binderless thermal coal briquetting process at their Nuurst project, where raw coal is crushed and hot gas extracts its moisture. The remaining dry coal is then forged into briquettes under extreme pressure. Independently tested in Australia, the briquettes produce energy increases with decreased emissions.

Modun managing director Rick Dalton, called it “a very significant achievement” for Modun – and Mongolia. “We are very proud to take technology developed in Australia and to employ it to help one of the fastest growing economies in the world meet their energy and heating demands – as well as helping reduce their pollution levels.”

The resolution allows the Ministry of Environment and Green Development and the City Mayor’s Office to enter into a purchase agreement with Modun for its Nuurst project briquettes with further talks under way. City, environmental and mining officials will now work to support Modun’s sustainable infrastructure development to accommodate production.

Government officials have allowed the plant an initial annual capacity of 200,000 to 250,000 tonnes, with total domestic annual raw usage demand in the Ger District estimated at between 700,000 to 900,000 tonnes. Domestically-approved briquette pricing for the winter of 2012, meanwhile, stood at US$105 to US$119 per tonne. Pricing for future winters will be negotiated through sale and purchase agreements.

ASX-listed Modun is developing the 34.5sqkm Nuurst thermal coal project in central Mongolia where it has announced a 478 million-tonne JORC-compliant coal resource. Nuurst lies 120km south of Ulaanbaatar and 6km from existing rail links into China.

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