PERTH (miningweekly.com) – Coal junior TerraCom on Friday revealed the potential to expand production at its Baruun Noyon Uul (BNU) coking coal mine, in Mongolia, to three-million tonnes a year.
TerraCom told shareholders that following an extensive exploration programme, the company has compiled a detailed execution plan which is forecast to deliver targeted yearly production of three-million tonnes from BNU.
The plan would involve the progressive opening of additional multiple pits, which would improve efficiency through spread of costs and overheads over higher volumes, lower the overall unit costs, and improve run-of-mine coking coal quality, providing a higher price point potential.
TerraCom said on Friday that the company has held discussions with its existing customer base regarding the sale of the additional coal volumes.
The company is targeting the three-million-tonne-a-year production rate by early 2019.
The BNU project delivered 246 408 t of coal during the June quarter, with the mine currently producing at rates to meet sales obligations under a five-and-a-half-year offtake contract to one of the largest private coal companies in China.