In 2Q21, O2 Mining Ltd was engaged to conduct a front end engineering design study on the Erdenet Rail Terminal coal storage and transloading infrastructure. Trade-off analysis comparing capital and operating costs, as well as social and environmental impacts of alternative storage concepts and materials handling technologies, has now been completed in line with Stage 1 objectives. The preferred configuration for further detailed evaluation has also been confirmed.O2 Mining is now in the process of completing the second and final phase of the FEED Study, increasing the level of detail and accuracy in design and cost estimations for the preferred infrastructure configuration. This is expected to be completed within 4Q21.The suite of infrastructure upon which more detailed engineering and cost estimation is to be performed include the following components aimed at maximising efficiency and minimising environmental impact and operating costs:Enclosed unloading stations for acceptance of coal from road trucks will ensure that these trucks can unload quickly whilst ensuring that any dust generated during discharge will be captured.An enclosed coal storage building will protect the coal from and enable train loadout operations to continue during inclement weather, whilst also preventing discharge of dust and water from the site.An automated reclaim system from coal stockpile to train loadout will enable high speed train loading without reliance upon use of mobile equipment, and consequently reduced diesel consumption and emissions generation.The preferred location for this terminal facility has been secured adjacent to the Erdenet-Sakhilt rail line, in a location where incoming truck traffic will not impact on populated areas and which has nearby high voltage mains electricity. The local government is supportive of the intended development, and discussion and negotiation continue with relevant parties and stakeholders.