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Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine

Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine

The United States Environmental Protection Agency (USEPA) and Raven Ridge Resources, Incorporated (RRR) recently concluded the Pre-feasibility Study for Coal Mine Methane Recovery and Utilization at Baganuur Mine, Mongolia.  The Baganuur mine is a surface coal  mine owned and operated by Baganuur Joint Stock Company (Baganuur JSC), located outside of Ulaanbaatar.  The mine is 75 percent state owned and 25 percent privately owned.  Baganuur mines 3.5 million tonnes of coal per year, with plans to increase production to over 6 million tonnes per year by 2020.  After constructing a three dimensional geologic model, RRR estimated there are 248.97 million tonnes of coal within the Baganuur mining area. The expected service life of Baganuur is 60 years.

The prefeasibility study evaluated utilization of pre-drained CMM for on-site use to fuel an internal combustion power generation facility located in close proximity to the mine’s surface facilities.  In the production modeling performed for this study, a series of 19 wells are proposed, positioned along the western rim of the pit outside of the projected five-year mine plan.  Total estimated CMM production is 54.3 million m3 of methane over 10 years which is available for use to generate electricity. Operating 8,000 hours each year, once the project reaches peak production, 40,000 MWh of electricity would be generated annually. This equates to an installed capacity of approximately 5.0 MW of combined electrical and thermal generating capacity.

The proposed project capital costs are estimated to be $5.4 million USD with an IRR of 22.7 percent and a payback period of 4.32 years.  The proposed power generation project is estimated to reduce CMM emissions by 104,500 tonnes of CO2e over the project’s 10 year life.