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Dornod MAK MINING

Location:
The Dornod-MAK Project is located in the territories of Bayantumen and Kherlen soums of Dornod aimag.

Road access:

-Accessible to Russia via railway (connected with East Siberian Railway)
-Choibalsan town shall be connected with the Mongolian railway system coming from southern Gobi regions in accordance with the long term infrastructure project plan of the Government,
-80 km from the Mongolian border, Chinese railway is operating,
-Choibalsan shall be accessible wit paved road from Ulaanbaatar city within 2013.

Border ports close to the Project site:

-Ereentsav 285 km (borders with Russia)
-Khavirga 100 km (borders with China)
-Sumber 300 (borders with China)

Water resources:

Water supply for the Coal to liquid plant can be sourced from the Kherlen River, which is one of the largest outbound rivers of Mongolia, located in 8 km from the Project site. In addition, water collected through and in artificial dams for floods and surface water and mine dewatering shall be used in full extent to supply the project.

Open cut mine:
5.4 million mtons of coal production

2 million mtons of ROM coal feed
Coal gasification plant

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Gas to Methanol
island

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3.4 million mtons of ROM coal feed
Power Plant 300MWT

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-145 MWT electricity to market into the power grid
-155 MWT used for CTL plant

Methanol to Gasoline island
– 400.000 tons A92 Gasoline per year
– 39.000 tons LPG per year

Production capacity planned:
-400,000 TPA gasoline with octane #92
-39,000 TPA liquefied petroleum gas as a by-product,
-300 MWT power generation at the power station.

Laboratory scale analysis for coal: (2000-2012)
-SGS, Switzerland
-Siemens, Germany
-RWE, Germany
-DMT, Germany
-Coal Research Center, China
-UMATAC Inc., Canada
-Petroleum Research Center, Tallinn University, Estonia
-JCOAL, Japan
-Fushun Mining Corp, China
-China Petroleum University,
-Headwaters Inc., USA

Coal resources:
MAK owns mining license with brown coal resources of 287 million tons in total, estimated under the JORC compliance as results of exploration campaign performed in 2009.

Coal gasification test, re-test: (2006, 2012)
-Siemens FGT, Germany

Quality Upgrading and Briquetting Test for Coal : (2006, 2008, 2010)
-RWE, Germany
-White Energy, Australia

Project Technical Documentation:
Fluor Corporation, USA completed pre-feasibility study and conceptual design of the Dornod MAK coal liquefaction project.

Preliminary Project Schedule:
-Power plant (stage 1 and 2) – 2015 and 2016
-Coal liquefaction plant commissioning – 2018