Polo Resources commissioned its first mine this month with the opening of the Ereen openpit coal mine located 320 kilometres north west of Ulaanbaatar.

High quality low ash semi bituminous coal (6400Kcal as received) is being transported 122 kilometres to its Erdenet Train Terminal by a fleet of 10 x 80t haulage trucks.
Laboratory test work continues on the coal and recent high swell indexes of 5.5 FSI indicates the likely existence of coking coal within the deposit. It is anticipated that the Ereen Coal Mine will become cash generative during the fourth quarter of 2008 and the resulting funds will be applied to the exploration programmes currently underway in the South Gobi Basin.
Neil Herbert, a Deputy Chairman of Polo Resources, said, "The initiation of production at the Ereen Coal Mine is an important milestone for Polo providing valuable operating experience in Mongolia and enhancing our already strong financial position. We currently have a healthy cash position of US$81 million, rising coal production from the Ereen mine and excellent growth prospects with the active exploration programme in the South Gobi Coal Basin."

 

Source: Montsame