Aspire Mining signs agreement to advance coal railway
Aspire is the largest coal tenement holder or Ovoot Coking Coal in Mongolia’s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets.
Aspire Mining signs agreement to advance coal railway. Aspire is the largest coal tenement holder or Ovoot Coking Coal in Mongolia’s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets. The company signed a memorandum of understanding with a Mongolian and Russian government joint venture to progress the commercialization of the Erdenet to Ovoot Railway. The Mongolian and Russian government joint venture, Ulaanbaartar Railways JSC (UBTZ) manages all railway operations in Mongolia and owns the Trans Mongolian Railway. Aspire owns the Ovoot Coking Coal Project and its development is dependent on the construction of the Erdenet to Ovoot railway, which is being progressed by Aspire’s subsidiary Northern Railways LLC. The 547 kilometer railway segment is included in a new Northern Rail Economic Corridor connecting China and Russia through Mongolia as part of China’s One Belt One Road Policy. The MOU will help progress a number of key commercial agreements required to support construction funding of the Erdenet to Ovoot Railway. These include the commercial terms upon which the Erdenet to Ovoot Railway users can access the UBTZ line to move freight through to end markets in Mongolia, south to China or north to Russia. The signing of the MOU continues the recent strong momentum gained from the positive first stage feasibility study results, received in January. The study reduces the risk for investors to invest in the project now to fund the second and final stage of the feasibility study and other predevelopment works and permitting. Importantly, it will also now enable China Development Bank and other Chinese policy banks to conduct commercial due diligence on investment for the construction contract.
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