Wednesday, July 30, 2008

Polo Resources says Ereen Mine to enter production Oct, road ahead of schedule

LONDON (Thomson Financial) - Polo Resources Ltd. said on Tuesday its Ereen open pit mine is due to come onto production in October and the construction of the new road from the mine to the Erdenet rail loading facility in northern Mongolia, is ahead of schedule.

Production at Ereen is expected at the rate of around 100,000 tonnes per month, while the 32-kilometre main haulage road is 30 percent complete and is being constructed to an all-weather standard.

'Sale prices for this coal are high and will allow Polo to make significant returns on the small capex investment it has made,' Polo resources said.

It added it has signed an agreement with Sujitz, a coal trader, to review offtakes of coal from Ereen and Union coal projects.

The company further said the Ereen project allows Polo to get valuable experience of mining in the region before it reaches the development stage of its much larger coal projects in the South Gobi coal basin.

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