This technical report presents the coal processing and recovery methods at the Ovoot Tolgoi Coal Mine, including proposed design, historical operating data, and testwork as of December 31, 2023.
Report context
This technical report was prepared with an effective date of December 31, 2023, dated December 2, 2024, covering resource estimates and reserve estimates for the Ovoot Tolgoi Coal Mine. The Coal Mine is comprised of Sunrise Pit, Sunset Pit, B Field Prospect, and C Field Prospect, situated in the southwest corner of the Umnugobi Aimag (South Gobi province), Mongolia. SouthGobi Resources Ltd. holds its interest through its wholly owned subsidiary, SouthGobi Sands LLC.
Processing route
Introduction
In early 2016, SouthGobi Resources Ltd. and SouthGobi Sands LLC formulated optimized mining, coal processing, and sales strategies for the Coal Mine, determining that run-of-mine coal would be hauled to processing facilities constructed at the mine site for complete processing before sales.
Proposed Coal Handling and Processing
The proposed coal handling and processing consists of four stages: screening, sorting, wet washing, and quality control. This proposed design delivers three types of finished coal products: 1/3 coking coal, thermal coal with a calorific value of 6,200 kcal/kg, and thermal coal with a calorific value of 5,800 kcal/kg. Such multiple coal products are expected to maximize the value of the Coal Mine.
Historical Operating Data
Since 2017, the wash plant has been put into operation to process WF Coal (washed) into WA Coal (washed), WB Coal (washed), or F Coal separately. In 2019, the mobile screen and the pneumatic separation plant were installed and commissioned for handling and producing WF Coal from F Coal.
The wash plant, to optimize its operation, is working on technical solutions to address various issues such as throughput, dewatering circuits, raw coal feeder, and power supply.
Screening and Sorting
The ROM coal sorting procedure is documented in the report. Mobile screens are used to handle ROM coal as WF (Wash Feed).
Quality Control
Quality control is an integral stage of the proposed processing route, with finished coal products subject to quality specifications.
Yield Estimation
Estimated processing yields and product specifications have been documented. Production data from 2018 to 2023, historic production figures, and annual ROM coal quantities by ash content for the combined Sunset and Sunrise Pits are available in the report data.
Key reported parameters
| Parameter | Value | Basis |
|---|---|---|
| ROM coal annual production target | 9.0 Mtpa | Proposed design |
| Peak historical ROM production (2017) | 6.38 Mt | Actual historical |
| ROM coal production (2023) | 3.75 Mt | Actual historical |
| Mining recovery factor | 95% | Reserve estimate assumption |
| Mining dilution factor | 2.5% | Reserve estimate assumption |
| Cut-off ash content for raw coal | 50% | Reserve estimate assumption |
| Mining method | Open pit terrace truck-and-shovel | Proposed design and current method |
| Screening equipment | Mobile screen | Installed 2019 |
| Wet washing equipment | Jig box | Operating since 2017 |
| Pneumatic separation | Pneumatic jet processing plant | Installed and commissioned 2019 |
| Rotary breaker | Rotary breaker | Operating equipment |
| Crushing equipment | Rotary breaker | Operating equipment |
| Finished coal products | 1/3 coking coal, thermal coal 6,200 kcal/kg, thermal coal 5,800 kcal/kg | Proposed design |
| Wash plant products | WA Coal (washed), WB Coal (washed), F Coal | Historical operation |
Project website: https://www.southgobi.com/html/business.php
Technical qualifications
This technical report is based on a review of available technical information provided by SouthGobi Sands LLC, and the qualified persons inspected the Coal Mine on February 28 to March 6, 2024, with a follow-up site visit from August 23 to August 25, 2024. The qualified persons did not independently conduct field work, including drilling, to confirm the interception of coal seams for resource definition. Opinions presented in this Technical Report apply to site conditions and features as they existed at the time of investigations and those reasonably foreseeable, and do not necessarily apply to conditions and features that may arise after the date of this report.
Source: Ovoot Tolgoi Coal Mine , 2024 Technical Report, effective date December 31, 2023, dated December 2, 2024, Sections 1 (Executive Summary), 2 (Introduction), 16 (Mining Methods), 17 (Recovery Methods), and related sections.
