Aspire Mining Ltd (ASX:AKM) has advanced the Ovoot Coking Coal Project (OCCP) in Mongolia by completing a front-end engineering and design (FEED) study for the coal handling and preparation plant (CHPP) infrastructure to be constructed at the project, as well as the final report outlining design and cost estimates.
Responding to community feedback, Aspire has focused on the elimination of potential dust emissions as an express objective of design and engineering.
The company says the concept presented in the latest FEED study represents a more sophisticated processing and materials handling solution compared to the March 2019 pre-feasibility study, having incorporated leading technologies to minimise power and water consumption.
Aspire believes this to be an important step in the establishment of the CHPP at the Ovoot site in the country's north as it enables consistent delivery of high-quality coking coal to market.
Only one other Mongolian coking coal producer currently improves its coal on-site to a globally recognised product specification.
Key outcomes of stage 2 FEED study
Aspire contracted Sedgman Pty Ltd to complete the second stage of its OCCP FEED study, generating the following outcomes:
- Preparation of concept design with nameplate capacity of 350 tonnes per hour feed, based on a simple, robust process flowsheet using proven technologies;
- Incorporation of reliable equipment capable of operating more than 7,200 hours per annum and 20 years life with appropriate training and maintenance regimes in place;
- Meeting design objectives to maximise water and power efficiency, containment of potential dust emissions and avoidance of requirement for tailings storage facility;
- Optimisation of layout conducive to future phased expansion, including product handling system capable of supporting doubling of initial throughput;
- Engineering conducted in sufficient detail to underpin equal or more than 15% capital and operating cost estimates;
- Forecast construction schedule of 15 months on the ground;
- Total capital cost for construction of the described CHPP infrastructure is estimated at US$77 million, including assumed EPC (engineering, procurement and construction) contract margin but excluding project and owner contingency allowances; and
- Increase in estimated capital cost is primarily attributable to modified scope of facilities incorporated within design, intended to support achieving and maintaining a social licence to operate, application of more stringent design standards and a backdrop of stretched supply chains and higher capital cost environment leading to conservative and short duration price estimates.