15/08/2014 - 14:40

Viking in MOU with Mongolian cement manufacturer

15/08/2014 - 14:40

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Auminco Mines has signed a memorandum of understanding with Mongolian cement manufacturer Khutul Cement and Lime for the supply of coal from its Berkh Uul coal project.

Auminco Mines has signed a memorandum of understanding with Mongolian cement manufacturer Khutul Cement and Lime for the supply of coal from its Berkh Uul coal project.

Auminco, an unlisted public coal development company, is in the middle of a takeover offer by Viking Mines.

Viking stated that more than 97 per cent of Auminco’s shareholder base has accepted the offer so far.

“Viking is optimistic about winning a slice of KCLC’s business as low sulphur content is a feature of Berkh Uul coal, which is important for cement manufacture,” Viking chairman John Gardner said.

The project is located 400 kilometres north of Ulaanbaatar in north-eastern Mongolia.

“We understand KCLC has plans to substantially increase cement production to meet a growing domestic demand,” Mr Gardner said.

“This would result in its coal demand increasing from the current 250,000 tonnes per year to around 400,000 to 500,000 tonnes per year.”

It is the fourth MOU secured for Auminco’s Berkh Uul project.

Viking’s share price closed at 4.2 cents per share.

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