An environmental assessment report for the continuous miner exploration and development program was filed during October this year.

Erdene said it expected the program would commence within a year of obtaining all approvals. Coal produced from continuous miners will be sold domestically and internationally to establish a customer base for future output.

The Donkin Project is a joint venture between Xstrata (75%) and Erdene (25%). The program is the first of a two-stage development program towards establishing the feasibility of the proposed large-scale underground longwall mining operation.