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Viking Mines signs 4th MoU at Auminco mine

15th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Viking Mines, formerly Viking Ashanti, has inked a memorandum of understanding (MoU) with a Mongolian industrial company for the future potential supply of coal from Auminco Mines.

Unlisted Auminco Mines is currently the subject of a takeover offer by Viking, which to date, had secured a shareholding of some 97% in the takeover target.

Viking chairperson Jack Gardner said the MoU, the fourth for Auminco’s Berkh Uul bituminous coal project in Mongolia, was a significant event for the company, as Khutul Cement and Lime (KCLC) was Mongolia’s largest cement manufacturer.

“We understand KCLC has plans to substantially increase cement production to meet a growing domestic demand. This would result in its coal demand increasing from the current 250 000 t/y to around 400 000 t/y or 500 000 t/y,” Gardner said.

He noted that Viking Mines was optimistic about winning a "big slice” of KCLC’s demand, as low sulphur content was a feature of the Kerkh Uul coal.

Edited by Creamer Media Reporter

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