Hunnu Coal has received mining licence MV-016872 from the Mineral Authority of Mongolia for its Tsant Uul project.

The mining licence has been granted for an initial term of 30 years with an option to be extended twice to 70 years.

The licence covers a total area of 692km² and is located in the South Gobi coal province of southern Mongolia.

The firm has completed a study for a coal haulage access road from Tsant Uul Mine site to the existing coal haulage roads, which is currently under government approval.

Hunnu Coal is expecting to initially produce 1.5Mt of coal from the mine in 2012 and is planning to expand this to 3.0Mt in 2013.