The horde of miners looking to cash in on Mongolia's vast mineral wealth and close proximity to China has just got bigger.

Junior exploration company Xanadu Mines said that it is seeking offers for its Mongolian thermal coal projects so it can focus on prospective coking coal, copper and gold deposits in the country.

The Sydney based company said that confidentiality agreements have been signed with a number of unnamed parties and negotiations are at an early stage.

Xanadu has estimated its Khar Tarvaga and Galshar coal projects contain 497 million tonnes; the company was recently granted a 30 year mining licence for Khar Tarvaga and is applying for Galshar.

Miners have stepped up exploration of Mongolia's largely untapped mineral wealth in recent years, hoping to capitalise on the growing demand for energy and metals from neighbouring China and other Asian markets.

Xanadu has said its strategy is to target opportunities in the trans-Mongolian rail corridor, or near the Chinese and Russian borders. The company has three coking coal projects under development in a joint venture with commodities trading company Noble Group and is exploring for gold in the south east Gobi and for copper at a fully owned project.

(Sourced from www.theaustralian.com.au)