Gobi Coal & Energy (“Gobi”) owns and develops coking coal assets in Mongolia with a combined 322 million tons of JORC resource in two existing open mines about 300km from the Chinese border.
Gobi’s deposits host some of the largest coking coal resources in Mongolia and the company is one of the largest landholders in Mongolia’s highly prospective south western coking coal basins. Gobi is targeting additional resources in the Gobi region, including the Khurren Gol exploration project.
Established in 2004, Gobi plans to rapidly expand production and start export to China in 2011. The target market for Gobi’s coking coal are steel works and power plants located in Gansu, Inner Mongolia and Xinjiang province, territories with significant coking coal supply deficit.
Near surface coal allows for a low cost, open cut mining operation with the trucking of coal to the Chinese border, prior to the construction of a railway. The Railway Authority for Mongolia has granted Gobi the right to build a railway to the Chinese border of Ceke which is connected to the Chinese rail network. Gobi’s license areas are situated along the Mongolian government’s planned east – west rail link and the two main pits at Zeegt and Shinejinst have mining licenses.
Origo became a major shareholder in Gobi in 2009 and expects the company to benefit from China’s growing appetite for coking coal.