Thursday, 01 March 2007
MONGOLIA will experience a manufacturing boost after QGX Ltd. received a positive study regarding the potential development of a Coal-To-Liquids (CTL) methanol plant associated with its Baruun Naran coal resource, located in Umnogovi aimag, southern Mongolia. The CTL plant is being evaluated as part of a review to maximize the value of the thermal coal that will be mined with the coking coal at Baruun Naran.
Coal at Baruun Naran is amenable to gasification and the production of methanol and methanol-derived products, the feedstock for petrochemicals. Furthermore, the current adjacent coal resource at Baruun Naran more than adequately provides sufficient coal to meet the plant’s annual coal requirements for a period in excess of 30 years.

The production of methanol from coal follows well understood and proven commercial processes. In summary, coal is received by belt conveyors from the mine to form stockpiles. Coal from the stockpiles is then blended to smooth out the variation of properties before it is crushed to make the slurry feed that will be transferred to the gasifiers. The coal is first gasified into syngas (consisting mainly of CO and H(2)), which is then adjusted to increase the H(2)/CO ratio, cleaned, and converted catalytically into methanol.

If built, the capacity contemplated would make this plant one of the largest coal-to-methanol plants in Asia. In addition to producing methanol, the plant will yield a byproduct of sulfur. Development would consist of a phased approach with an initial start-up plant at one-third the size. In October, 2006, QGX received official permission from the Mongolian government authorities to explore for water in the vicinity of Baruun Naran. QGX has identified water aquifers that potentially may satisfy the plant’s water demands and plans to conduct water exploration in 2007. QGX has been active in its operations inside Mongolia since 1994

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