The South Gobi Basin hosts some of the largest coking and thermal coal deposits in close proximity to China e.g.Tavan Tolgoi more than 5 Bt, Ovoot Tolgoi more than 390 Mt. Peabody-Polo hold thirty coal licences in the South Gobi totaling 5,617 squares kilometres in area.

In 2008 and 2009 drilling and exploration work conducted on six of the licences, identified coal seams that require further drilling to determine the full extent and size of the coal resources. Extensive seismic (40km), induced polarisation (140km) and magnetic (240km) geophysics surveys completed in the last quarter of 2009 have identified numerous targets that require drilling in the 2010 field season.

Summary of Exploration Completed on Peabody-Polo’s 30 Coal Licenses in South Gobi (2008-2009):

• Reconnaissance mapping of all licenses to assess the geology, identify sedimentary basins, assess the potential for hosting coal beds and locate any coal occurrences

• Detailed geological mapping of all coal occurrences, followed by trenching and drilling if warranted

• A total of 11,512 metres in 105 holes have been drilled on eight licenses in the South Gobi

• Significant ( >2metres thick) coal intersections have been intersected in drilling on four licenses

• Further drilling is planned in 2010 to further define coal resources

• In December 2009, extensive ground geophysics surveys were completed over eleven licenses aimed at detecting near surface coal buried under younger rock cover. Results of this work have identified numerous targets that warrant drill testing in 2010

South Gobi Coal Project Location Map


South Gobi Projects - Polo Licenses and coal basins
(click on the map's west, central or east project areas to view more detailed map)