NACO Fuels JSC (MSE:NKT, "Naco") is pleased to announce a successful trial run of its Clean Coal operations in Darkhan plant, producing high-quality smokeless fuels for the Ulaanbaatar city market. After the successful trial, improvements on the process will be made and production will gradually increase to full capacity throughout 2014. Sharyn Gol JSC (MSE:SHG, "Sharyn Gol") recently took over the company and currently owns 92.9% of the outstanding shares. Sharyn Gol is supplying coal used at NACO.
Ulaanbaatar city has been identified as one of the most air polluted capital cities in the world. NACO's Clean Coal product will dramatically reduce air pollution and have positive impact on health. The NACO process takes coal from Sharyn Gol and treats the coal in two vertical retorts. The retorts reduce the volatile matter content of the coal by over 60%, the emissions from which are the primary cause of the pollutants. This means that the coal burns much cleaner and for much longer and additionally reduces the overall amount of fuel used. NACO product will be sold in lump form initially and briquetting plant is expected to come on line next year. Potential valuable by-products are also captured, including bitumen and syngas.
Mr. B.Batbaatar, Chairman of NACO said, "Although this year we are doing a trial run after the company retorts were on care and maintenance, it is a major step forward in establishing the company as the primary supplier of clean, smokeless fuel to the Mongolian market. Our intention is to continue to develop and expand the business to ensure we can make a real difference to people's lives and health in our cities. Both Sharyn Gol and NACO are connected to the Trans-Mongolian rail road and have easy access to Ulaanbaatar."
