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NEW NARYN SUKHAIT COAL MINE

Naryn Sukhait bituminous coal property is located in the territory of Omnogovi aimag, in 34 km south of Gurvantes, 296 km west of Dalanzadgad town, 849 km southwest of Ulaanbaatar city and 56 km north of Shiveekhuren border port. MAK started mining operation of its wholly owned New Naryn Sukhait coal mine in December 2007 and the first export shipment from the New Naryn Sukhait delivered on May 2008.
The coal employs 406 workers and miners in total.

Resources:

MAK completed detailed exploration campaign throughout the licensed area of Naryn Sukhait property during 2002 through 2006. As results, 229 million tons of semi soft metallurgical coal resources were identified from surface to 100 m deep zones. Additional exploration and drilling completed beyond 100m depth and pending for approval by the Mineral Resources Certification Committee.

Annual production capacity: 10 million tons of coal.


Mine camp: accommodation has the capacity of 454 occupancy and all camp facilities comprise the following functions:

1. Accommodation for engineering staff
2. Accommodation for service workers
3. Coal chemical laboratory
4. Mine office
5. Hotel
6. Eight family accommodation for local workers
7. Two canteen with capacity of 104 and 180 seats
8. Sports hall

9. Medical facility
10. Mechanical workshop
11. Laundry
12. Play room
13. Car wash
14. Vegetable green house
15. Animal farm.


Mine infrastructure:

Customs bonded facility at the coal mine and border coal gates were brought into operation for the purpose of eliminating bottleneck at the border clearance, expediting customs declaration and inspection process for coal export. Capacity for coal export clearance doubled and customs inspection cycle time reduced upon installation of these new facilities fitted with necessary equipment and online access etc.

New infrastructure development:

MAK plans to expand existing infrastructure for coal mine with Coal handling and preparation plant (CHPP), coal storage and loading facility with automated reclaimer/stacker systems. CHPP project with the capacity to produce 5 million TPA washed concentrate, shall enable to market contaminated coals after washing and increase coal export volume and value and support coal processing industry. At present, hydrogeological campaigns are progressing for the purpose of identifying suitable water supply for the project.
MAK plans to set up a Coal storage and loading facility to be located 9 km from the border within the Mongolian territory. This storage shall have automated systems such as stacker to pile coals and washed concentrate in various quality ranges, blending facility to market coal in accordance with customers’ demand and coal reclaimer and loading equipment for both railcars and trucks. On 16 Aug 2013, The Government of Mongolia has issued resolution to build railway with international standard gauge within the border territory of Mongolia on order to boost the coal export to foreign markets.
In between CHPP and Coal storage facility, MAK shall develop overland conveyor belt system for about 32 km. This transportation system shall substitute existing truck transportation of coal creating environmental friendly approach to coal export from the New Naryn Sukhait mine by reducing considerable fuel emissions and dust pollutions. Transportation cost per ton of coal shall greatly reduce as well.