NEDO, Mongolia to Explore Coal Resource in Mongolia

New Energy and Industrial Technology Development Organization (NEDO) announced on Monday it launches a joint coal exploration in eastern Gobi with Ministry of Industry and Trade of Mongolia. They agreed to seek the project, which Mongolian government offered. Ministry of Economy, Trade and Industry of Japan supports the project to secure stable coal supply for Japanese industries. The joint exploration will exploration works including boring, seismic survey, analysis of coal for 5 years starting the year to March 2006 to find out the geologic structure, coal resources and coal quality for potential oven cut mining. Both parties will sign the agreement with exploration, work sharing and expense distribution in Ulan Bator of Mongolia. The project starts when Mongolian government, which regards resource industry as basic industry for the country, accelerates resource development. The country has around 150 billion tonnes of resources from brown coal to anthracite and produces around 7 million tonnes per year, of which the country exports 1.5 million tonnes for China. The country could become major coal source for Japan. Japanese government supports the exploration and tries to secure stable source.