The plant, which has the capacity to wash 600,000 tonnes of raw coal per year, enables Sharyn Gol to produce an export grade coal, as well as a premium coal product for the domestic industrial market.

The coal wash plant is Mongolia's second operating coal wash plant and the only coal wash plant that has the potential to supply the domestic market.

The investment in the wash plant reflects Sharyn Gol’s commitment to solutions for the production of environmentally friendly, value-added coal products.

Sharyn Gol chairman Batmunkh Be said: “We are delighted that Sharyn Gol's team has succeeded in beginning coal washing operations.

“This investment by Sharyn Gol is consistent with the Mongolian government’s policy of encouraging Mongolian mining companies to invest in mineral processing technology. The wash plant opens a new chapter in the history of Sharyn Gol, which is celebrating its 50th year of operations.”

Sharyn Gol has also executed a memorandum of understanding with Mongol Sammok Logistics, which is a joint venture between the Mongolian state and Sammok Shipping Company of South Korea.

The signing ceremony took place at the Mongol Business Summit that is being held at the Ikh Tenger Complex.

Under the terms of the agreement, both parties have agreed to cooperate to export Sharyn Gol’s washed coal to the South Korean market. It is intended to transport the coal through Russia via rail to Rajin port in Rason Free Economic Zone, North Korea, after which it will be loaded onto a vessel and delivered into the South Korean market.

The parties anticipate beginning with a 25,000t trial shipment and will expand the export operations after the successful completion of the trial shipment.