- TMK Energy (TMK) strikes a “milestone” cooperation and electricity offtake agreement with Mongolian conglomerate Mongol Alt (MAK)
- MAK is one of Mongolia’s largest and most successful groups of private companies and owns and manages the coal mining lease where TMK is conducting its initial pilot well program for its Gurvantes XXXV project
- TMK will sell MAK electricity produced from the gas of the three pilot production wells and excess water from the early stages of the pilot well program
- In return, MAK will provide TMK with access to its heavy machinery and support for the construction of the Pilot Well Program infrastructure
- Shares in TMK are up 13.3 per cent and trading at 1.7 cents at 2:22 pm AEDT
TMK Energy (TMK) has struck a “milestone” cooperation and offtake agreement with Mongolian conglomerate Mongol Alt (MAK).
The agreement strengthens TMK’s partnership with MAK, which owns and manages the coal mining lease where TMK is conducting its initial pilot well program for its Gurvantes XXXV project.
MAK is one of Mongolia’s largest and most successful groups of private companies.
“Close cooperation between MAK and TMK will be mutually beneficial, allowing for significant efficiencies and the ability to better utilise the valuable resources of produced water and produced gas during from the pilot production wells in a manner that is both environmentally sensible and commercially attractive,” TMK Energy CEO Brendan Stats stated.
Under the deal, TMK will sell to MAK the electricity produced from the gas of TMK’s production wells. TMK has also agreed to provide MAK with the excess water it produces in the early stages of the operation of its pilot well program.
In return, MAK has agreed to provide TMK with access to its heavy machinery, support equipment and personnel to assist it in the construction activities of the pilot well program.
“The opportunity to generate and sell power to MAK will allow TMK to demonstrate that the Gurvantes XXXV project can provide a new and scalable domestic solution to meet the growing energy demand of the South Gobi region and help address Mongolia’s energy security, reliability and independence,” Mr Stats said.
TMK said the agreement offered a pathway to early commercialisation by providing electricity to one of the largest users in the area.
The MAK mine is a large energy user and also has a significant demand for water.
Shares in TMK were up 13.3 per cent and trading at 1.7 cents at 2:22 pm AEDT.