TIAN Poh Resources is on track to complete a pre-feasibility study for its coal to gas project and gas pipeline network project around July this year. Initial findings are positive and the company expects to be able to progress development of the project.
After the acquisition of a 478 million tonne JORC-compliant coal resource in Mongolia in 2015, Tian Poh late last year signed two major MoUs with Chinese partners to assess developing the deposit.
The company organised a site visit for its MoU partners in April 2016 and also met high-level staff of regulatory departments and the Ministry of Energy.
On August 10, 2015, Tian Poh announced that it has signed an agreement to purchase Modun Resources LLC in Mongolia, the owner of the Nuurst Thermal Coal Project, from ASX-listed Modun Resources.
Of the 478.3 million tonnes JORC resource, 326.1 million tonnes are in the measured category, 103.8 million tonnes in the indicated category and 48.4 million tonnes in the inferred category.
Nuurst is 120km southeast of Ulaanbaatar in an area with a number of operating coal mines and is 6km from existing rail infrastructure allowing direct access onto the Trans-Mongolian Railway.
On December 15 the company’s Mongolian subsidiary, Poh Golden Ger Resources (PGGR), signed an MoU with Shanxi Zhangze Power Co Ltd to investigate the feasibility of building, in stages, 1000MW of coal-fired power generation facilities adjacent to the Nuurst project and to be fed by coal from the project.
Tian Poh’s CEO Poh Kay Ping, has a longstanding business relationship dating back to the 1980s with state-owned Datong Coal Mine Group, the parent company of Shanxi Zhangze Power. PGGR appointed a retired senior manager of the Datong group as agent to handle this project. The MoU provides for formation of a joint project team to study, organise and implement the project.
Two days later PGGR signed an MoU with China Petroleum Pipeline Bureau (CPP) to jointly study a proposal to build a coal to natural gas plant near Nuurst, with a capacity of 1.3 billion to 8 billion cubic metres per year. The proposal also includes construction of a gas pipeline from the plant to Ulaanbaatar and China. CPP is a leading integrated design, engineering and construction company for pipeline and storage related facilities.