The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

Issue link:

Contents of this Issue


Page 27 of 91

26 | ASIA Miner | September/October 2014 MODUN Resources continues to focus on sourcing a local partner to help fund development of the Nuurst Thermal Coal Project. The ASX-listed company says that discussions with a number of potential partners remain ongoing. In addition, the company's Mongolian representatives have contin- ued to hold discussions with the Mongolian Government to progress completion of a previously announced offtake agreement, however the timing for the government to sign the agreement remains uncertain. In June Modun completed a share placement to a sophisticated in- vestor raising Aus$200,000. In addition, at a general meeting on June 10, shareholders approved a placement to family interests associat- ed with company director and chairman Hugh Warner, raising another $200,000 via the issue of shares. Despite the success Modun has achieved in generating a 478 million tonne JORC 2012 compliant coal mineral resource at Nuurst it has not been able to convert this asset into growth in the company's share price nor has it been able to bring the project into production. The re- source comprises 326 million measured tonnes, 104 million indicated tonnes and 48 million inferred tonnes. As a consequence, chairman Hugh Warner says the company has been considering other opportunities available to it to bring value to its shareholders. The consideration of these opportunities has led the directors to develop three alternative strategies: • Continue to explore and focus on the Nuurst project solely; or • Keep the Nuurst project and continue to explore and develop that project while also looking at and acting on opportunities to acquire additional assets, and develop both of these assets side by side; or • Sell the Nuurst project and focus on identifying a new asset that the directors consider could bring value to shareholders. The company has been investigating the opportunity to diversify into the technology sector via the acquisition of a technology business. The company has been advised by the ASX that if it does pursue this strat- egy, then it will most likely need to re-comply with Chapters 1 and 2 of the Listing rules. Shareholder approval will be required to sell the Nuurst project. Hugh Warner says, "Clearly we could maintain our focus on the Nu- urst project and not suffer any compliance burdens but history has demonstrated that this is not a value creating strategy and so it is not our preferred course of action." Nuurst encompasses a 2497 hectare mining licence area, is 120km south of Ulaanbaatar and 6km from existing rail infrastructure which links directly into China. SUPREME Group, a leader in the provision of end-to-end supply chain solutions in challenging environments, has been awarded a contract to provide cateri ng, cleaning, laundry and security services for Mongolia's frst wind farm project. The contract was awarded by Clean Energy, a joint venture between Newcom Group, General Electric (GE), Europe- an Bank for Reconstruction and Development (EBRD) and Netherlands Development Bank (FMO). Located 70km south of Ulaanbaatar, the Salkhit Wind Farm is a land- mark project established by the private sector with support from the Mongolian Government and international development organizations. The project aims to improve living conditions in Mongolia through pro- duction of electricity by a local, clean and renewable energy resource. The 50MW facility uses 31 GE turbines and will annually offset around 180,000 tonnes of carbon dioxide emission, reduce coal usage by 122,000 tonnes and save 1.6 million tonnes of fresh water. Power gen- erated by the project will service customers connected to the central grid in Mongolia - a country in which energy demand has been increas- ing by 7% annually over the past few years. "The wind farm is a fagship development for Mongolia's renewable en- ergy sector and we are delighted to have the opportunity to work with Clean Energy on this project, especially as sustainability is one of our core values," says Supreme Group principal Stephen Orenstein. "We are com- mitted to local economic development and in particular to national sourcing and creating local employment opportunities, so we have hired a team of local employees and Mongolian suppliers to work with us as part of our Mongolia First Program. Since commencing operations in Mongolia in 2012, we have focused on providing world-class support services to help further develop the Mongolian mining and energy industry." Supreme provides end-to-end supply chain, construction and site ser- vice solutions in Mongolia, including the South Gobi region, with specialized skills in construction, food supply and site services. In addition to the Clean Energy project, Supreme also provides food supply and camp services to workers in a road construction camp in the South Gobi Desert - a contract awarded by one of Mongolia's largest industrial holding companies. Founded in 1957, Supreme Group provides supply chain solutions to defence, government and commercial sector clients around the world. For more than 50 years, the company has provided critical, life-sustain- ing services that empower clients to accomplish missions in challeng- ing and austere environments. Supreme offers a unique breadth of capabilities ranging from procure- ment, transportation and storage through to technology and full site services. Supreme has a long history of supporting international orga- nizations and governments. Current clients include the United Nations, North Atlantic Treaty Organization, and leading military forces including the US Department of Defense and the UK Ministry of Defence. The company has also partnered with many commercial clients. Modun considers Nuurst options Supreme Group has won a contract to provide catering, cleaning, laundry and security services for Mongolia's frst wind farm. Supreme wins wind farm contract

Articles in this issue

Archives of this issue

view archives of The Asia Miner - SEP-OCT 2014