MEC is an energy and resources developer. We acquire concessions, explore and co-ordinate mine development. We work with leading companies in our endeavours.

We, at MEC, studied the possibility of acquiring energy and related resources projects for a number of years. At the end of 2006 an opportunity to acquire coal resources in Western Mongolia came about to us. 

I immediately arranged a visit to "Khushuut" and "Darvi" at Khovd Province, Western Mongolia. There, I saw an existing open cut used by the military as a coal reconnaissance base until 1990. There were also exposed coal outcrops and some abandoned coking facilities.

MEC thus negotiated and acquired 34,000 hectares of concession areas at Khushuut and Darvi. MEC now has title to 330,000 hectares of concession areas in Western Mongolia at Khushuut, Darvi, Gants Mod, Olan Bulog, Gobi Altai and Banyan-Olgiy. These are for coal, ferrous and non-ferrous metal resources.

With a focused, professional and realistic approach, MEC demonstrated, within 600 hectares of the concession areas at Khushuut, 149 million tonnes of JORC compliant coal resources, including substantial coking coal resources. The exploration work continues at this and other areas, including reconnaissance  exploration for ferrous and non-ferrous metals in the Gants Mod and Gobi-Altaiand Banyan-Olgiy regions.

With the explored coal resources and under the directions of James J. Schaeffer Jr., our CEO, an industry veteran, MEC is planning to commence a 3 million tonnes (2 million tonnes saleable) per annum mining operation, with the gradual expansion to 8 million tones (5.5 million tones saleable) per annum, concentrating on coking coal.  This is to meet the coking coal demands in Xinjiang, China. In the process, MEC is upgrading and building a roadway, the 'Khushuut Road" from Khushuut to Xinjiang, China.  The market study report shows sustained demands for coking coal in Xinjiang, China from steel manufacturers.

Aside from the projects in Western Mongolia, MEC also has minority interests in oil and gas, coal and metal resources projects in southern Mongolia and Xinjiang, China. These are new geological areas and the preferred model for MEC is to co-operate with others in these areas and to build on the network of support by other industry players under MEC's realistic business model.

By matching the energy and related resource needs of Western Mongolia and Xinjiang, China, MEC hopes to assist the needs of the peoples in these areas whether in terms of economic developments or satisfying demands for such products, with due regard for the environment and in a sustainable manner. You will also read under this website the work that MEC is doing in relation to its corporate social responsibilities.

It is MEC's ambition to achieve a brand name recognition in the energy and related resources sector. I believe that this is under way. I look forward to your support to do this together.


SIMON LO Chairman to MEC