Page 12 - AsiaElec Week 25 2022

AsiaElec COAL AsiaElec

Silver Elephant to begin Mongolian

coal production at Ulaan Ovoo in 4Q

MONGOLIA SILVER Elephant Mining Corp said that its whereby NewCastle 5,500 GCV thermal coal
wholly-owned subsidiary Mega Thermal Coal quintupled to an all-time high of US$427 per
Corp (Mega Coal) was preparing to commence tonne,” Silver Elephant said, adding: “Coal prices
Mongolia coal production at its Ulaan Ovoo pro- at Erenhot typically trade at a nominal discount
ject in 4Q 2022. from the Newcastle benchmark.”
Mega Coal is commissioning Ulaan Ovoo in Mega Coal’s management team estimates
collaboration with its Mongolian partner, who that there are approximately 90,000 tonnes of
owns and operates a mining fleet at Ulaan Ovoo coal stockpiled at the Ulaan Ovoo mine site and
that is said to be able to support 30,000 tonnes the nearby Sukhbaatar rail siding. While the rail
per month of coal production at a steady rate. congestion to China has caused the sale of coal
The equipment mine site inventory currently to be postponed, the situation is expected to ease
includes: six excavators, 13 dump trucks, four in 4Q2022, said Silver Elephant.
loaders, two screeners, one crusher, one water Plans are under way for Silver Elephant to
truck and one fuel truck. spin out Mega Coal in late 2022.
There were limited Ulaan Ovoo coal ship- John Lee, CEO of both Mega Coal and Silver
ments to China via the Erenhot rail port due to Elephant, stated that “2022 could be a break-
low coal prices in 2021, according to Silver Ele- out year for Mega Coal as we are gearing up for
phant. As a result, it said, the mine operation was Ulaan Ovoo production to take advantage of the
curtailed in late 2021. unprecedented thermal coal price”.™
“Since then, coal prices have increased

P12 www. NEWSBASE .com Week 25 22•June•2022