Proactive Investors - Run By Investors For Investors

Aspire Mining shares surge on revealing viable rail link between Ovoot and Russian border

The Ovoot Coking Coal Project contains Mongolia's second largest coking coal reserve.
mongolia map
Aspire shares are trading 10% higher intra-day, at 2.2 cents

Aspire Mining Ltd (ASX:AKM) has received a positive preliminary economic assessment (PEA) for a rail link for its Ovoot Coking Coal Project in Mongolia, from rail design and engineering firm Perfect Road Project LLC.

The PEA confirms a technically and commercially viable 238.6-kilometre line from the Ovoot project to the Mongolia-Russian border port of Arts Suuri.

This extension north-west from Ovoot to Arts Suuri when combined with the planned Erdenet - Ovoot rail line would complete the Mongolian section of the Northern Railway Corridor.

The Northern Rail Corridor is a combined initiative of the Mongolian, Chinese and Russian Governments with the potential to be the fastest, lowest cost rail path linking North Eastern China, Mongolia, Russia and Europe, significantly enhancing regional trade flows and economic benefits.

READ: Aspire Mining targets early development of world-class Mongolian coking coal project

Importantly, the proposed new rail extension would open up additional Russian and European markets for the potential benefit of Aspire’s coking coal project.

The PEA applied Mongolian class 2 railway design standards to ensure compatibility with the Erdenet - Ovoot rail project and will have up to 15 million tonnes per annum capacity – with additional capacity able to be later added to meet demand growth.

Aspire executive chairman David Paull said: “The delivery of this PEA provides further confirmation of the viability of the Northern Rail Corridor.

“The company has provided this PEA to the Mongolian Ministry of Roads and Transport and Mongolian rail operator UBTZ Railways JSC to provide further justification to proceed to implementing the Ovoot to Arts Suuri rail project as part of the Northern Rail Corridor.’’


Aspire is targeting early production of washed coal from Ovoot within 12 to 15 months of approval and has formulated the Ovoot Early Development Plan (OEDP) including related funding commitments.

In support of the OEDP, the company has executed a cornerstone placement to Mongolian businessman and judo champion Tserenpuntsag Tserendamba, as part of a $15 million strategic financing package.

READ: Aspire Mining receives strong placement support and lifts conditional raising to $2.1 million

View full AKM profile View Profile

Aspire Mining Ltd Timeline

Related Articles

The Toral project
October 31 2018
Since June, the company has achieved an increase in the Toral project's inferred resource estimate, completion of the Phase 1 RC drilling programme and commencement of a Phase 2 diamond infill drill programme, a successful re-logging exercise of historic core to provide valuable additional data and sustained progress on the preparation of the initial scoping study
Map of Queensland, Australia
February 28 2019
A recently published preliminary economic assessment shows an after-tax net present value of A$124 million and an internal rate of return of 24%
Copper Blow project on an Australian map
February 07 2019
Exploration is ongoing at Copper Blow where the company aims to establish a resource.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use