Aspire Mining Ltd (ASX:AKM) has progressed into the second and final phase of the Front-End Engineering Design (FEED) Study for the company-owned Erdenet Rail Terminal in northwest Mongolia.
The company is focused upon engineering, permitting and financing the Ovoot Coking Coal Project to mine coking coal by open pit, wash it on site and then truck the washed coking coal to a rail terminal facility in Erdenet for delivery to customers in China and Russia via the existing Mongolian rail network.
In the June 2021 quarter, O2 Mining Ltd was engaged to conduct a FEED Study on the Erdenet Rail Terminal coal storage and transloading infrastructure which is due to be completed within the December quarter of 2021.
FEED study
A 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
Importantly, Stage 2 aims at increasing the level of detail and accuracy in design and cost estimations for the preferred infrastructure configuration which is expected to be completed within the December quarter.
Suite of infrastructure
The suite of infrastructure upon which more detailed engineering and cost estimation are 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, which will ensure that these trucks can unload quickly whilst ensuring that any dust generated during discharge will be captured;
- Enclosed coal storage building that 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; and
- Automated reclaim system from coal stockpile to train loadout which will enable high-speed train loading without reliance upon the use of mobile equipment, and consequently reduced diesel consumption and emissions generation.
Current interests
Aspire Mining is 100% owner of the world-class Ovoot Coking Coal Project, and 90% owner of the Nuurstei Coking Coal Project, both in Khuvsgul aimag (province) of northwestern Mongolia.
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.
Promisingly, the local government is supportive of the intended development, and discussion and negotiation continue with relevant parties and stakeholders.