Today (22 December), Australian Jade Gas has signed a memorandum of understanding (MoU) to supply gas from its TTCBM project in Mongolia to power Xanadu Mines’ Kharmagtai copper-gold development.

Xanadu is developing copper-gold porphyry deposits in the south of Mongolia, with its Kharmagtai project located approximately 80 km to the northeast of Jade’s TTCBM project. The operation is expected to have a 30-year mine life with up to 120 MW of power demand.

Jade said the MoU aligns both parties shared ambition for improving Mongolia’s energy independence, energy mix, and meeting climate change commitments.

The parties will work toward negotiating commercial terms for a binding gas sales agreement which is expected after Jade’s 2023 TTCBM project pilot production programme.

“Jade has already established substantial gas field potential over a 45 km strike, and it is pleasing to see commercial customers in the region recognise the important role that Jade can play in providing a cleaner source of energy to deliver on ESG ambitions for sustainable operations,” Jade CEO Chris Jamieson said.