Energy Resources has granted Leighton Asia an Aus$700 million contract adjustment to ramp up production at the Ukhaa Khudag (UHG) Coal Mine in the South Gobi region.

In a deal worth Aus$940 million, Energy Resources contracted Leighton in April 2010 to ramp up the coking coal mine to annual production of 10 million tonnes of raw coal production by June 2011.

This contract adjustment will see Leighton ramping up annual production to 15 million tonnes by January 2013.

Energy Resources is a private company and a subsidiary of major Mongolian conglomerate MCS.

Leighton Asia originally started operating at UHG in April 2009 when production reached 1.8 million tonnes within 8 months.

UHG hosts big coal seams at shallow depths and is close to the key Chinese market.

www.energyresources.mn