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Hunnu gets ready for production

HUNNU Coal has head hunted another veteran from the Ukhaa Khudag (UHG) mine in Mongolia while rec...

Blair Price
Hunnu gets ready for production

Hunnu managing director George Tumur is the former head of mining for Energy Resources, the subsidiary of Mongolian conglomerate MCS which established the UHG coking coal mine that sets the benchmark for what can be achieved in the country and is on track to ramp up to 15 million tonnes per annum by January 2013.

The latest Hunnu recruit associated with the development of UHG is Dr Batjargal Tsog, who will become Hunnu’s chief operating officer.

Hunnu said Tsog previously held senior management roles in the Mongolian branches of the World Bank and United Nations Development Programme and was involved in the development of UHG with a focus on integrated power and infrastructure support.

“Dr Tsog will play an important role in the business and technical management of Hunnu Coal as the company moves towards initial production at its thermal and coking coal mines,” Hunnu said yesterday.

The Australia-listed company has already poached the mining and geology heads from Energy Resources.

Meanwhile, Hunnu completed 28 out of a 38-hole program at the Unst Khudag project by last week, with all but three intersecting coal seams.

The company said single seam thicknesses were up to 25.6m at less than 6m from the surface, while combined thicknesses were up to 43.7m.

Analysis revealed calorific values ranging from 5289 kilocalories per kilogram up to 5941 kCal/kg on a dried basis.

Ash levels were fairly high ranging from 9.6-27.5% while the analytical moisture contract ranged from 6.71-9.34%.

Hunnu aims to start full production at its 60%-owned Unst Khudag thermal coal mine in the December quarter.

The South Gobi region project is expected to cost less than $5 million for first stage development.

Tumur previously told ILN the mine life could be 30-50 years even if there is a ramp up to 10Mtpa.

Hunnu shares were up 5.5c to 98c this morning.

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