SouthGobi to begin trial shipment from E. Kalimantan coking coal project

Canadian mining firm SouthGobi Energy Resources Ltd is preparing to begin trial shipments to customers in Asia of an initial 30,000 tonnes of high-quality metallurgical coal from the new Mamahak Project in East Kalimantan, parent company Ivanhoe Mines Ltd reported on Friday.

During the fisrt quarter of 2009, SouthGobi received a series of results from its coal-sampling programs at Mamahak that suggested the coal is of a premium quality and has some unique characteristics, including high fluidity, that make it suitable for coking processes.

The results prompted SouthGobi to continue development at the site. The coal-extraction infrastructure, including a 34-kilometre haul road to the Mahahkam River, and barge load-out are being completed, Invanhoe said.

SouthGobi has engaged two mining contractors that have significant experience in operations similar to Mamahak, it said.

In January 2009, SouthGobi announced that a location permit was received, allowing the commencement of surface coal extraction at Mamahak Project. SouthGobi has an 85% working interest in Mamahak, with provisions to increase its interest to 100%.(alex)