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Terra Energy owns and operates the Baruun Noyon Uul (BNU) coking coal mine in Noyon Soum, South Gobi province. The license is located on 17,432 hectares of land. Production at the mine successfully restarted in late 2014, with all major equipment re-commissioned. The BNU coking coal mine ramp-up is progressing well, and recently an important safety milestone of 1 Million man-hours Lost Time Incident (LTI) free was reached. The project is strategically located approximately 80km east of Nariin Sukhait, which includes the strategic South Gobi Resources (SGS) Ovoot Tolgoi coal mine, and the large MAK coking coal mine.

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The JORC resource for BNU Mine consists of 15.26Mt Measured, 8.77Mt indicated and 3.04Mt inferred. Also located in the South Gobi Project is the proposed East Pit. Salva Resources has estimated a maiden 41Mt JORC Inferred Resource based on previous East Pit exploration results.

TerraCom recently secured offtake agreements from the BNU site with 2 end-users in China: JISCO and Haohai. You may read the news release here.

Based on the successful trial-use of the BNU coal in the first quarter of 2015, the customers have stated that TerraCom’s coal performs consistently with low sulphur, low ash and a high coking index.

Currently BNU raw coal undergoes analysis and testing at the BNU laboratory, operated by Bureau Veritas. Coal samples are collected from the pit, the ROMPAD, and exploration drilling for detailed analysis. Analysis includes tests for proximates, Calorific Value, Sulphur, Density, Sapzhinokov X and Y, Crucible Swell (CSN) and G index.

The mine has been fully commissioned and the coal is being transported through the Shivee Khuren border crossing in Mongolia, to Ceke in China.

Newest Mongolian License

The newly attained exploration license XV-018111, located 60km east of the BNU mine site, greatly complements the company’s current coking coal assets portfolio in South Gobi. TerraCom plans to quickly develop a potential resource to JORC and MRAM standards. You may read the press release here.