Khotgor Coking Coal Mine

Khotgor Coking Coal Mine


The Khotgor mine is located approximately 210 km south of the local capital of Bayankhongor in the Bayankhongor province and 305 km from the Chinese border crossing of Ceke.  Exploration work within the area has identified 113.1 million tonnes of JORC 2012 Reserves and 181.0 million tonnes of JORC Resources in 5 main seams with a total average coal thickness of 36 metres. A mining license was granted in 2007, a feasibility study was completed in 2011 and updated in 2019, and all permits are in place to commence production.  Production is expected to ramp up to 7.5 million tons per annum of high quality coking coal product with a mine life of 19 years.  While initial production may be trucked to the Chinese border, the Khotgor project will benefit in the future as it is strategically located on the new Mongolia Railway System announced by the government.


  • Eight Mining Licenses issued between 2007 and 2019 covering 6,020 hectares
  • Feasibility study completed in April 2011 and updated in 2019
  • Open cut coal mine with local operations
  • 479 boreholes drilled for 59,075 metres as of 2021
  • Construction of a haul road commenced in November of 2011 and a preliminary 289 km pilot road connecting Shinejinst to the link road between Naran Sukhait and the Chinese border has been completed (upgrading is in process)
  • Starter pit has been prepared for mining operations
  • Bulk samples have been delivered to potential customers and positive feedback and strong interest have been received

Resources & Coal Quality

  • The coal product quality analysis has been based on tests from 22 core holes covering a strike length of 8.5kms across the area of the proposed pit shell testing:
    • Raw coal quality; Coal washability (sizing float-sink and flotation), and Designated clean coal product quality
  • Designated roof floor and interburden samples were also tested for raw dilution analysis and sizing. Coal washability testing was performed on the L, M, N and O seams.
  • A&B Mylec assessed the quality of product achievable through blending of the seams at Khotgor with results summarised on a mass-weighted basis and include an estimate of dilution based on the proposed mining techniques and the geology
  • The Khotgor Resource presents as High Volatile Bituminous Coal according to the ASTM Classification of Coal by Rank
  • The indicative product specification suggests it is saleable as a semisoft coking coal with its market appeal enhanced by acceptable low sulphur and phosphorus attributes
  • The average product yield as applied to the coal fraction was estimated at 77.8% with a product ash of 9.8%
  • Of note is that the sulphur level of 0.56% within the product coal is lower than that from other operating mines in the region thus likely providing a marketing advantage
  • The mines in the vicinity of Ovoot Tolgoi often have product sulphur greater than 1.5% with the bulk of it being organic within the coal, hence, unable to be removed by processing

Future Plans

  • Sampling to confirm coal quality characteristics and wash plant yield
  • Haul road design and construction
  • Railway joint venture with Mongolian Railway State Owned Shareholding Company (MTZ)


  • Khotgor project located 305 km by pilot road to the Mongolia-China border by Ceke and hosts 181.0 Mt of JORC 2012 semi-soft coking coal Resources with 113.1 Mt of Proved and Probable Coal Reserves
  • Shinejinst updated JORC 2012 feasibility study produces an NPV(10) of US$ 863M, an IRR of 29%, and a payback period of 7 years
  • Shinejinst mineable coal quantities are 113.1 Mt ROM at a strip ratio of 7.7:1 and a production schedule ramping up to 7.5 MTPA with a 19-year mine life
  • Consortiums established with Chinese-state owned enterprises for road, railway and wash plant construction, project financing and coal offtake to achieve mine devlopment and production.

Road Construction
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