South Gobi and Indomet Coal Asset Strategic Overview
BNU CHPP TO BE CONSTRUCTED IN 2017
SIGNIFICANT YIELD, QUALITY AND COMMERCIAL BENEFITS
Noyon Basin Coal Specification Issues
Coal is soft and friable resulting in high proportion of fines
The coal fines contains a large proportion of vitrinite and
hence coking properties
CHPP's in Mongolia or northern China cannot efficiently
deal with this specification of coal
Benefits of CHPP at BNU
Improvement in yields of 3-6% due to CHPP designed
specifically to deal with fines
Avoids yield manipulation by third party CHPP operators
Ability to claim 10% Mongolian VAT against operating costs
Reduction in distribution / trucking costs
Ability to expand and wash third party coal in the future
Status
Negotiating vendor finance options / 100% TER owned
Approvals completed, construction to commence by end H1
2017
Specifications Phase 1 CHPP
Raw feed 1.0-1.5 Mtpa
Raw feed rate 200-250 tonnes/hr
Minimum 6,000 hour p.a. run time
Operate in extreme temperatures
(-30 degrees to +40 degrees)
Dual product
Modular for future scalability and
easily relocatable
Delivers <10.5% ash product with
ability to deliver higher ash / higher
yield options
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