QGX Launches Mongolian Coal-to-Liquids Initiative
27 June 2006
|Baruun Naran is within trucking distance of major steel and power generation centers in northern China. Click to enlarge.|
QGX Ltd., a Canadian company that has been exploring for mineral deposits in Mongolia since 1994, has engaged Nexant, Inc., a global energy consulting company with core competencies in coal gasification, Integrated Gasification Combined Cycle (IGCC), coal-to-liquids (CTL) Fischer-Tropsch (FT) processing and gas-to-liquids (GTL) technologies, to assess the technological and economic potential for applying CTL technologies to the coal at Baruun Naran in Mongolia.
Nexant’s initial review of the coal-quality data for Baruun Naran coal indicates that the coal appears amenable to coal-conversion applications.
QGX received a positive initial indication of support from the Mongolian Ministry of Fuel and Energy regarding a possible CTL project earlier this year. Currently Mongolia imports 100% of its transportation fuels.
The goals of the Nexant study, which is expected to last three months, are to:
Assess the Mongolian and Chinese market demand and pricing for Fischer-Tropsch liquids (synthetic gasoline and diesel), olefins, methanol and di-methyl ether (DME);
Select the most appropriate gasifier based on the properties of the coal and the commercial maturity of the gasifier; and
Conduct a preliminary plant design, cost estimate, and financial analysis for each candidate product to assess its economic potential.
|Current mining operations at Tavan Tolgoi (Baruun Naran).|
Nexant is an affiliated company with Bechtel Corporation.
Baruun Naran is one of QGX’s two most advanced properties in Mongolia. One 7 June, QGX announced a resource for Baruun Naran of 107.5 million tonnes of metallurgical and thermal coal contained in Indicated and Measured and an addition 48 million tonnes contained in Inferred.
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