ASX-listed coal explorer Hunnu Coal on Wednesday reported that it had started trial mining at the Unst Khudag coal mine, in Mongolia.

The trial opencut operation would produce an initial supply of coal for bulk test work, and for delivery to potential offtake partners for independent test work.

Hunnu said in a statement that the trial mine would also deliver important geotechnical and hydrological data, which would be used in the modelling of a much larger upscaled opencut mine.

Offtake agreements were currently being negotiated with both Mongolian and Chinese thermal coal users, said Hunnu.

The World Trade Organisation called on Friday for countries to work together more closely in trade in natural resources – an area often seen as exempt from many international commerce rules.

Governments must cooperate more intensively to deal with the challenges for both importing and exporting countries in trade in natural resources, such as export restrictions and import tariffs, it said in its annual World Trade Report.

“In a world where scarce natural resource endowments must be nurtured and managed with care, uncooperative trade policies could have a particularly damaging effect on global welfare,” the report said.

In Kurt Vonegut’s 1976 novel ‘Slapstick, Or Lonesome No More’, he talks about a future Chinese government that physically shrinks the population to reduce resources demand.

But such a mass miniaturisation remains in the realms of fiction, and China’s insatiable appetite continues to grow.

The International Energy Agency (IEA) this week said the world’s most populous nation was now using more energy than the US, or any other country for that matter. And it happened faster than the IEA expected.

Since the turn of the century, China’s energy consumption has doubled. The country has scrambled across the globe in search of oil to supply its needs, and in 2009 became the biggest coal importer.

Vancouver-based Ivanhoe Mines has appinted BNP Paribas, Standard Chartered and Export Development Canada (EDC) to complete its core lender group of five financial institutions that will lead the arrangement of a project finance debt package for the Oyu Tolgoi copper and gold mining complex in Mongolia.

Ivanhoe said in May that it had signed a joint mandate letter with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) for evaluation of a major financing package for the project, which is expected to cost $4,6-billion.

“The completion of the assembly of the core lender group is a key step in the process of securing the Oyu Tolgoi financing package, which we expect to close in the first quarter of 2011,” executive chairperson Robert Friedland said said in a statement on Monday.

Ivanhoe Mines executive chairperson Robert Friedland isn’t one to shy away from a fight.

He’s been involved in various lawsuits, and has personally written angry letters to major news publications regarding their coverage of the Canadian junior, which owns the prized Oyu Tolgoi project in Mongolia.

Now, Friedland’s come to blows with Ivanhoe’s biggest shareholder, Rio Tinto – the third biggest miner globally.

The dispute arose a week ago, when Rio Tinto said it was taking the Vancouver-based firm to arbitration over its implementation of a shareholder rights plan, which basically prevents the UK major from buying shares in the open market over and above what the two companies agreed on back in 2006, after the standstill period ends in October next year.

To do so, under the shareholder rights plan, Rio Tinto would have to make an offer to all shareholders. It already owns 29% of Ivanhoe, and still has the option to take up additional shares and convert a $350-million loan that would see it holding 44% of the company.

Rio Tinto subsidiary Palabora Mining has appointed Tony Lennox as new MD, as Matthew Gili steps down after five-and-a-half years at the JSE-listed copper and vermiculite company.

Gili leaves Palabora to take on a new role at the Oyu Tolgoi copper project in Mongolia, which Rio Tinto and Ivanhoe Mines are developing.

Global miner Rio Tinto signed an agreement on Wednesday with Kazakh state company Tau-Ken Samruk on joint prospecting and mining in the Central Asian state.

Rio Tinto said in June it would be forced to look at investing outside Australia if Canberra pushes ahead with a 40% tax on so-called super profits.

Tau-Ken Samruk is the metals and mining arm of Kazakh state investment company Samruk-Kazyna. The chairman of Tau-Ken Samruk, Bolat Svyatov, said the project would produce copper, gold, bauxites, iron-ore and other metals.

Toronto-based Khan Resources will start international arbitration proceedings against the government of Mongolia over the cancellation of its uranium licences in that country.

The uranium developer, which also announced on Tuesday that CEO Martin Quick would retire, said it had retained Washington DC-based law firm Crowell & Moring to start arbitration proceedings.

“Khan believes that it has a strong case and intends to seek a substantial damages award that reflect the significant value that Khan has created in the Dornod uranium project,” it said in a statement.

The Mongolian Nuclear Energy Agency (NEA) notified Khan in April that the uranium-mining licence and exploration licence for its operations had been invalidated.

The mining licence is held by 58%-owned Khan subsidiary Central Asian Uranium Company (CAUC), and the exploration licence belonged to Khan Mongolia.

Mongolian coal developer Hunnu has yet again increased its footprint in that country with the acquisition of a 60% interest in the Buyan coal project, within the Taval Tolgoi coking coal field.

The ASX-listed Hunnu said on Tuesday that the acquisition of the Buyan project was strategic, as it had existing infrastructure in place, and was within one of the world’s largest coking coal fields.

The company would now be undertaking a detailed exploration project during the coming months, as part of its exploration strategy in the South Gobi region.