PERTH (miningweekly.com) - ASX-listed Xanadu Mines was looking to divest of its Galshar and Khar Tarvaga thermal coal projects, in Mongolia, following a strategic review of operations.

The Galshar and Khar Tarvaga projects are estimated to host a combined Joint Ore Reserves Committee-compliant resource of some 497-million tons.

During December last year, the Mongolian Mineral Authority granted a mining licence for the 83.5 km² Khar Tarvaga coal project, which in itself is estimated to host some 327-million tons of resource.

The mining licence has been granted for an initial 30-year term, with an option for two 20-year extensions, providing for a total 70-year mining operation.

Xanadu said on Friday that following the strategic review, the company had decided to increase the focus on its highly prospective coking coal, copper and gold opportunities in Mongolia, and was now seeking offers for interest in the Galshar and Khar Tarvaga projects.

Confidentiality agreements have been executed with a number of parties, and negotiations were at an early stage, the miner said.

Xanadu currently has three coking coal projects in a joint venture with the Noble Group, and has two wholly owned thermal coal assets. In addition, the company was also progressing exploration of its highly prospective suite of licences for gold in the south-east Gobi and copper at its Sharchuluut project.
 

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