Guildford Coal, the Australian company implementing the South Gobi Project in Umnugobi aimag, has confirmed an initial JORC Resource of 63.1 million tons of coal with coking potential at the site.

The maiden resource comprises 38.2 million tons in the Indicated category and 24.9 million tons in the Inferred category.

The company owns five exploration licenses in the area, which is located just 60 km from the Chinese border. If the company exploits the resource through open mining, it could annually dig from 1 to 2 million tons of coal.
 
Guildford Coal is also implementing the Middle Gobi Project in Dundgobi aimag. The company hopes the two projects will yield a combined reserve of 1.3 billion tons of coal.