Aspire Mining Ltd (ASX:AKM) is focused on the development of the Ovoot Coking Coal Project in Mongolia, which contains a JORC 2012 compliant total coal reserve of 255 million tonnes of high-quality (fat) coking coal.
The company is advancing engineering, permitting, and financing of 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.
Aspire has made significant progress on the project during the quarter ended December 31, 2021.
DEIA report lodged
The Detailed Environmental Impact Assessment (DEIA) for the Ovoot Coal Mine was presented to the local community during the quarter where it was received and supported by a significant majority of the community.
The minutes of the community meetings were included with the DEIA report subsequently lodged with Ministry of Nature, Environment and Tourism for assessment and approval anticipated in the March 2022 quarter.
Finalisation of CAPEX and OPEX estimates
Stage 2 of the Front End Engineering Design (FEED) study on the Coal Handling and Preparation Plant is well advanced with bespoke designs prepared to facilitate control of dust at locations including raw coal delivery and washed coal storage and collection.
Local companies have been engaged to input into specialist areas including electrical and HVAC design.
Completion including finalisation of CAPEX and OPEX estimates is expected within the March 2022 Quarter.
Erdenet Rail infrastructure FEED study
Phase 2 of the FEED study on the Erdenet Rail Terminal Infrastructure progressed and is due to be completed within the March 2022 Quarter.
Design drawings have been prepared for materials handling (coal truck unloading, coal storage and train loading) and supporting commercial and residential facilities.
Road studies progressed during the quarter with the completion of topographic, geological, hydrological, and archaeological surveys along the planned route and finalisation of the tractor-trailer simulation works for refinement of equipment selection and operating cost estimation.
Feasibility study and detailed design are being prepared based on this information which are expected to be completed and lodged with the Ministry of Roads and Transportation early in the June 2022 Quarter.
Coking coal price near all-time high
It is worth noting that prices for coking coal remained at historically high levels through the December quarter.
Post COVID-19 economic stimulus is expected to keep steel demand high over the short to medium term supporting coking coal prices.
During the quarter, Aspire’s financial adviser, Argonaut PCF, worked on developing a banking financial model incorporating the detailed first principles definitive feasibility study quality operating models recently completed by the company.
Aspire remained well funded at the end of the quarter, with a cash balance of A$32.8 million (US$23.8 million).