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Aspire Mining Limited (AKM)
is a publicly listed company on the Australian Securities Exchange (ASX).
About Aspire Mining
Aspire Mining Limited is an ASX listed (ASX: AKM) exploration and development company focused on discovering and developing world class premium coal deposits in Mongolia, maximising shareholder returns over the long term, and contributing to the social and economic enrichment of local communities.
Aspire is a partnership of Mongolian Australian interests with a primary focus on Mongolia, a resource rich country with a rapidly developing coal mining industry emerging as a key future supply source given Mongolia's close geographical position to some of the largest coking coal consumers worldwide – China, Russia, Japan, Korea, Turkey and Europe.
Whilst a majority of coal projects are located in the south of Mongolia, Aspire is progressing the development of its flagship wholly owned Ovoot Coking Coal Project ("Ovoot Project") in northern Mongolia. The Ovoot Project currently has a Probable JORC Compliant Coal Reserve of 255 Mt of coking coal. The Ovoot Project is classed as the second largest coking coal Reserve in Mongolia, and has considerable room to grow further from future exploration activities.
The Ovoot Project is ready to move into a Definitive Feasibility Study and development, having completed two Pre-Feasibility Studies, received a Mining Licence, and approval from the Mineral Resource Authority of Mongolia for its Mongolian Feasibility Study. At full production the Ovoot Project is capable of producing up to 10 million tonnes per year of premium quality coking coal to be supplied to Asian, and Eastern European coking coal markets.
The successful development of the Ovoot Project is underpinned by the construction of railway infrastructure from the Ovoot Project connecting to the Trans-Mongolian Railway at Erdenet in northern Mongolia. The progression of this crucial piece of railway infrastructure for Mongolia is being driven by Aspire's Mongolian infrastructure subsidiary Northern Railways LLC.
The Company continues to focus on the commercial and development activities for both the Ovoot Project and the Erdenet – Ovoot Project railway in order to see commissioning of both mine and railway in 2018.
Aspire's wholly owned Ovoot Project comprises one mining and three contiguous exploration licences which span across over 430 square kilometres.
The Ovoot Project area is located in north-western Mongolia and includes the JORC Compliant Coal Resource and Coal Reserve area, the new coal discovery area, and the Hurimt and Zuun Del prospects. Together, the entire Ovoot Basin covers the majority of a large interpreted basin.
The Company completed its exploration programme at the Ovoot Basin in the December 2012 Quarter, as it turned its focus to commercialisation activities in 2013.
There are over 25 kilometres of the Ovoot Basin between hole DH335 and holes ZD001 and ZD002 that intersected coal. This central area of the Ovoot Basin was drill tested but while drill holes between the Ovoot Resource and Zuun Del did intersect potentially coal bearing Jurassic sediments, due to either difficult drilling conditions or the Jurassic sediments being particularly thick, drilling to basement had not been successful. The Ovoot Project Lower Seam sits just above basement rock. As the potential to identify further occurrences of Lower Seam remains, the potential to find significant additional coal resources in the Ovoot Basin remains high.
Northern Railways LLC
Northern Railways LLC is a Mongolian registered company, established by Aspire Mining Limited to act as a special purpose vehicle to oversee all aspects of the construction, and operation of a multi-user rail line extending from the current Trans-Mongolian terminus at Erdenet.
The Northern Rail Line forms part of the Khuvsgul Provincial Five Year Development plan and will connect to the existing Trans-Mongolian Rail system opening up significant new opportunity for various industry, small business, the community and local economy in northern Mongolia through:
- Rebalancing exports by opening accessibility to seaborne markets through Russia,
- Assisting with resource based economic development,
- Improving prices and returns in the local agricultural industries, and
- Improving access and flow of tourism to the region.
A Rail Pre-Feasibility Study ("Rail PFS") on the Northern Rail Line was completed in February 2012 by Optimal Projects LLC, and was approved by the Mongolian Rail Authority as technically feasible and with a general environment approval for the rail path chosen.
Following an independent review on the rail alignment between Erdenet and Ovoot conducted by Calibre Rail, an Alternative Southern Alignment was identified approximately 50 kms south of the original alignment near Moron, the provincial capital of Khuvsgul Province (refer Figure below). A Revised Rail Pre-Feasibility Study was completed over the western portion of the rail path in April 2013 by SMEC International Limited ("SMEC") which confirmed an overall shorter rail path distance of 547km and cheaper capital cost estimate of US$1.3 billion for the entire line. SMEC have also been appointed as Northern Railway's engineering partner to assist to complete a full re-optimisation of the rail alignment between Erdenet and Ovoot which will allow for EPC tendering and a Bankable Feasibility Study.
Northern Railways have identified and have held early discussions with several suitable international EPC Infrastructure Contractors and even some potential financiers for Northern Railways. These initial discussions can be further progressed once granted a rail concession from the Government of Mongolia. Northern Railways is currently engaging with the Mongolian Ministry of Roads and Transport, and would expect clarity from the Ministry over coming months.
The Northern Rail Line would take approximately three years to complete construction after final engineering and available for use by Aspire Mining to transport its coal to Customers in China and other seaborne coking coal markets.
Aspire Mining Limited
69 Kewdale Road
+61 8 9287 4555
Fax: +61 8 9388 1980
The General Overview, Services, Products and Projects information for this profile was last edited on 05 Jul 2016.