Hunnu Coal

Hunnu Coal Limited was an Australian-incorporated mining company established to acquire, develop, and operate coal assets in Mongolia. Its activities were conducted through the Mongolian subsidiary Hunnu Resources LLC, with projects reported in four Mongolian provinces, including South Gobi, Middle Gobi, and Sükhbaatar. The company’s portfolio included thermal-coal and coking-coal projects, and it became one of the more visible Mongolia-focused mining companies listed in Australia during the early 2010s. Hunnu Coal entered public markets through a listing on the Australian Securities Exchange on 12 February 2010. The listing was associated with strong interest in Mongolia’s mineral resources and with the broader expansion of Australian-listed companies seeking coal opportunities in the country. Resource Stocks Magazine selected the company’s initial public offering as the Best Australian IPO of 2010, while Mongolian broker and dealer MICC described its projects as having substantial growth potential. Hunnu Coal also explored the possibility of additional listings in Hong Kong and London, although the available reference material does not establish that those listings took place. The company’s development strategy centered on proving and expanding coal resources, progressing mine development, and increasing production. In mid-2011, Hunnu Coal announced that the estimated resource at its Unst Khudag thermal-coal project had doubled to 676 million tonnes. On 21 July 2011, management also announced an 85 percent increase in Hunnu Coal’s share of the JORC coal resource at the Tsant Uul project. These announcements were important to the company’s investment proposition because they increased the reported scale of its Mongolian resource base. Hunnu Coal began coal production in 2011. It forecast production of approximately 1.5 million tonnes from the Tsant Uul deposit in 2012 and three million tonnes in 2013. The company subsequently pursued portfolio expansion through the acquisition of the Altai Nuurs coking-coal project, announcing on 19 September 2011 that new ordinary shares would be issued as part of the consideration for that acquisition. The company’s independent corporate existence later ended through a takeover process involving Banpu Public Company Limited. Banpu’s subsidiary, Banpu Minerals Pte Ltd, announced its intention to make cash offers for shares in Hunnu Coal that it did not already own. The supplied reference material does not provide the completion date, final ownership percentage, or detailed post-acquisition corporate structure. Hunnu Coal is therefore treated here as a former, rather than active, standalone mining brand. Its historical significance lies in its role as an Australian-listed vehicle for Mongolian coal development during a period of heightened international interest in Mongolia’s mineral sector.

Hunnu Coal Limited was incorporated in Australia as a vehicle for acquiring and developing coal projects in Mongolia. Its operating activities were carried out through Hunnu Resources LLC, a Mongolian subsidiary. The company assembled interests in projects located across several Mongolian provinces, including South Gobi, Middle Gobi, and Sükhbaatar, and focused on both thermal and coking coal. The company became publicly traded on the Australian Securities Exchange on 12 February 2010. Its listing occurred during a period when Australian capital markets were an important source of funding for international mining ventures and when Mongolia was attracting significant attention for its coal and other mineral resources. Hunnu Coal’s IPO was later recognized by Resource Stocks Magazine as the Best Australian IPO of 2010. The company also considered seeking listings in Hong Kong and London, although the available material does not confirm that these plans were completed. Hunnu Coal’s early corporate development emphasized resource definition and project growth. In mid-2011, it reported that the resource at the Unst Khudag thermal-coal project had doubled to 676 million tonnes. On 21 July 2011, the company announced an 85 percent increase in its share of the JORC coal resource at Tsant Uul. These resource announcements strengthened the company’s stated development pipeline and supported its effort to transition from exploration and evaluation toward production. Hunnu Coal started producing coal in 2011. It expected output from Tsant Uul to reach 1.5 million tonnes in 2012 and three million tonnes in 2013. The company also expanded its portfolio through the proposed acquisition of the Altai Nuurs coking-coal project. On 19 September 2011, it announced that new ordinary shares would be issued as part of the consideration for that acquisition. The company was subsequently targeted by Banpu Minerals Pte Ltd, a subsidiary of Banpu Public Company Limited. Banpu Minerals intended to make cash offers for the Hunnu Coal shares it did not already own. The supplied sources do not state the complete timetable or final terms of the transaction, but the takeover resulted in Hunnu Coal no longer operating as an independent listed mining company. Hunnu Coal is consequently best understood as a former Australian-listed Mongolian coal developer whose assets and corporate history became associated with Banpu rather than as an active standalone brand.

• 2011

  First coal production

  [1]Hunnu Coalen.wikipedia.org

  Hunnu Coal commenced its first coal production in Mongolia.

• 2011

  Unst Khudag resource expansion

  [1]Hunnu Coalen.wikipedia.org

  The company reported that the Unst Khudag thermal-coal resource had doubled to 676 million tonnes.

• 2011

  Tsant Uul resource increase

  [1]Hunnu Coalen.wikipedia.org

  On 21 July 2011, Hunnu Coal announced an 85 percent increase in its share of the JORC coal resource at Tsant Uul.

• 2011

  Altai Nuurs acquisition consideration announced

  [1]Hunnu Coalen.wikipedia.org

  On 19 September 2011, the company announced a share issuance as part consideration for acquiring the Altai Nuurs coking-coal project.

• 2010

  Australian Securities Exchange listing

  [1]Hunnu Coalen.wikipedia.org

  Hunnu Coal Limited listed on the Australian Securities Exchange on 12 February 2010.

• 2010

  IPO recognized as the Best Australian IPO of 2010

  [1]Hunnu Coalen.wikipedia.org

  Resource Stocks Magazine selected Hunnu Coal’s initial public offering for its 2010 Australian IPO award.

A Mongolia-focused coal exploration, development, and production company using an Australian public-market platform to assemble and advance thermal-coal and coking-coal projects.

• Coal project · 2011

  Tsant Uul

  Tsant Uul was one of Hunnu Coal’s principal Mongolian coal projects and the project associated with the company’s initial production forecasts. Hunnu Coal began coal production in 2011 and expected the deposit to produce approximately 1.5 million tonnes in 2012 and three million tonnes in 2013. The company also announced an 85 percent increase in its share of the project’s JORC coal resource in July 2011.

• Thermal-coal project

  Unst Khudag

  Unst Khudag was Hunnu Coal’s thermal-coal project in Mongolia. In mid-2011, the company reported that the project’s resource had doubled to 676 million tonnes. The project formed part of Hunnu Coal’s strategy to build a large Mongolian coal resource base alongside its producing and development assets.

• Coking-coal project · 2011

  Altai Nuurs

  Altai Nuurs was a proposed addition to Hunnu Coal’s Mongolian coal portfolio. The company announced that new ordinary shares would be issued as part consideration for the acquisition, linking the transaction to its strategy of expanding into coking coal.

• 2011

  Share consideration for the Altai Nuurs acquisitionM&A

  Background

  Hunnu Coal sought to expand its Mongolian portfolio with the Altai Nuurs coking-coal project.

  Action taken

  On 19 September 2011, the company announced that it would issue new ordinary shares as part consideration for the acquisition.

  Aftermath

  The announcement documented a portfolio-expansion transaction, but the supplied sources do not provide the final acquisition terms or completion details.

  Source

• Banpu takeover approachM&A

  Background

  Banpu sought to increase its ownership of Hunnu Coal and consolidate the Mongolia-focused coal business.

  Action taken

  Banpu Minerals Pte Ltd intended to make cash offers for Hunnu Coal shares that Banpu did not already own.

  Aftermath

  Hunnu Coal ceased to operate as an independent listed mining company. The supplied material does not specify the final offer value or completion date.

  Source

1. 1Hunnu Coalen.wikipedia.org