RE: Another quick and dirty numbers "But this assumes that 15.5/t coal is enough to justify the mine. If this really is the case, it's not a bad project."
I think $15.5/t coal is enough to justify the mine. Although dated (Dec 16. 2010) and comparing an apple to an orange, the pre-feasibility study on Ulaan Ovoo I think serves as a good rule of thumb in regards to Chandgana:
Operating costs
Operating costs per tonne of ore mined are estimated at $US10.23. The break down of the costs is as follows.
The above unit operating cost is the average for Life-of-Mine including contractor and owner-operated mining. Contractor costs include equipment lease costs.