Sharyn

Sharyn Gol JSC (“the Company”) has a coal mining operation located in Northern Mongolia. It is currently a single asset company, owning 100% of the established Sharyn Gol Coal Mine (“Sharyn Gol”). Originally a state run enterprise developed to supply local utilities, the Company was privatised and listed on the Mongolian Stock Exchange in 2003.

The Company has been mining coal at Sharyn Gol for over 45 years, supplying both domestic and export customers predominantly for power generation, but also for specialized uses, such as semi-coking (smokeless fuel) end users.

The release of a new JORC Resource estimate over the property in February 2011 indicated the presence of a significant thermal coal deposit (374 Mt), with the possibility of further additional exploration upside from several identified areas.

Stage One of a production expansion program is underway, aimed at increasing output from 0.5 Mtpa to 1.0 Mtpa.  Stage two will see production increase further to 2.5 Mtpa, lengthening the expected mine life by decades.  The stage one and two upgrades can be achieved with minimal capital expenditure due to the existing infrastructure.

The present mining licence 1498A covers a total area of 1827.9 hectares.

Examination of coal quality and coal washability indicates the potential to produce a high yield, low ash, low sulphur, and high calorific value thermal coal suitable for regional and export markets. 

A dedicated 65km rail spur links the mine to the Trans-Mongolian railroad.  This offers Sharyn Gol direct access to Russia and China, and beyond to the East Asian markets of Japan, Taiwan and South Korea. This exclusive access to the rail spur provides the Company with a significant competitive advantage over the majority of coal mining operations in Mongolia.