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.