Viking Mines signs a Supply MoU for Berkh Uul Coal Project
ASX listed company Viking Mines has signed a third future coal supply pact with a Mongolian joint stock industrial firm for its Berkh Uul Bituminous Coal Project.
ULAN BATOR (Scrap Monster): ASX listed company Viking Mines has signed a third future coal supply pact with a Mongolian joint stock industrial firm for its Berkh Uul Bituminous Coal Project. This agreement strengthens the industrial demand for high quality thermal coal from the project and also makes a strong customer base.
This non-binding MoU was signed with Darkhan Metallurgical Plant (DMP), which is located in Darkhan City. DMP is the process for developing its present steel milling capacity to about 100,000 per annum, by the iron ore mining process near Berkh Uul and the expansion process is expected to complete in 2015.
Chairman Jack Gardner said that this MoU confirmed that there was significant local industrial demand for Berk Uhl coal and gave them great confidence that there was possibility to expand our customer base even more. Berkh Uul is fully owned by Auminco Mines. It is situated 400 kilometres north of Ulaanbaatar in Northern Mongolia, and within 40 kilometres of rail access into Russian off-take markets.
At present the site is held under an exploration permit which covers 4,550 hectares and is valid until 2015.