The Mongolian focused coal explorer Hunnu Coal Ltd (ASX:HUN), has been awarded a mining licence for its Tsant Uul Project from the Mineral Authority of Mongolia.
Hunnu says it now expects to move into production by the fourth quarter of this year, with an initial production target of 1.5 million tonnes of coal by next year.
The mining licence covers 69,233 hectares in the South Gobi region in Mongolia.
It has been granted for an initial term of 30 years with an option for two 20-year extensions, providing Hunnu with 70 years of mining operations.
The company’s exploration target for the project is between 150 to 200 million tonnes.
Yesterday shares in Hunnu Coal ended the day 1.2 per cent lower at $1.24.
Hunnu Coal booked a net loss of $7.2 million in the year to 2010 calendar year.
