David Paull

Aspire Mining has begun a 58-hole, 10,000 metre drilling campaign at its Nuurstei coking coal Project in Northern Mongolia in an endeavour to upgrade its resource in readiness for production. The Perth-based explorer, and aspiring coal miner aims to complete a feasibility study this year and has flagged potential first production from Nuurstei from as early as the first quarter of next year.

Aspire Mining’s dream of a northern Mongolian railway has taken a leap forward with a feasibility study finding it could deliver coking coal from the company’s Ovoot deposit to world markets at competitive prices. The study highlighted the positive economics of the US$1.25 billion project which Aspire says will churn out US$2.75b in free cash after tax over thirty years.

Aspire Mining’s proposed railway line in Mongolia is firming up as the Russian and Chinese Government’s recognize the strategic value of Mongolia as a transport hub. Aspire is now evaluating a dual transportation option for its Mongolian coking coal after Russia and Mongolia signed off on a long-awaited agreement for transporting goods. Under the deal, coal exports will receive a 66% discount on the Russian rail system.

Aspire Mining says that a proposed rail line that will link its Ovoot coking coal project in Mongolia to the proposed Kyzyl - Arts Suuri section of the Russian rail network at the border port of Arts Suuri is viable. The 238.6km rail line will cost USD$581.8m, which is in the range estimated by a scoping study completed in 2015 and comparable to the Erdenet to Ovoot feasibility study.

Mongolia focussed coal developer Aspire Mining has completed a $15m financing package for its Ovoot coking coal project in the northwest of the country and is now debt free and fully funded to complete the required feasibility work. Upcoming studies will focus on a high quality, low ash, low strip ratio carve out from the Ovoot ore reserve, concentrating on extraction and processing of the premium Ovoot upper seam.

Aspire Mining has reported that the expected supply and demand gap in the high quality, “fat” coking coal market in China over coming years will assist in fast tracking the development of its Ovoot coal project in north western Mongolia. The company recently finalised a $15m financing package for the project and is now debt free and fully funded through to the completion of all required feasibility studies.

Aspire Mining has generated outstanding results in the PFS for its Ovoot coking coal project in Mongolia. The study outlines pre-tax NPV of AUD$820m and IRR of 43.7% and produces 4 million tonnes annually for delivery into China at an exceptional margin of AUD$96 per tonne. The project has an initial mine life of just over nine years and produces an annual EBITDA of AUD$240m.

Aspire Mining’s DFS for its high-quality coking coal project has moved forward, with the Mongolian Government endorsing the company’s ore reserves for the Ovoot Early Stage Development project and approval of the Feasibility Study results expected shortly. These milestones enable Aspire to commence the relevant environmental studies, social impact studies and project management plans for the project.

Aspire Mining has received a show of support from its major shareholder Tserenpuntsag Tserendamba, who has committed to arrange a corporate guarantee of up to $100m to support future debt or project financing for its Mongolian Ovoot Early Development coal project, or “OEDP”. Mr Tserenpuntsag is also in the process of increasing his stake in the company from 27.5% to 51% through a $33.5 million share placement.

Aspire Mining’s DFS for its high-quality coking coal project in northern Mongolia will be released in mid-2020, after slight delays in approvals for the infrastructure. In May, the Mongolian Government endorsed the company’s ore reserves for the Ovoot Early Stage Development project, allowing Aspire to commence the relevant environmental studies, social impact studies and project management plans for the proposed coal mine.

Aspire Mining has released an updated PFS for its Ovoot Early Stage Development metallurgical coal project in Mongolia, saying the operation will pump out a stunning annual EBITDA of AUD$279m from the production of 4 Mtpa of high-value, “fat” coking coal, delivered into China. The updated PFS shows material reductions in capital and operating costs, with exceptional margins based on a coal price of AUD$218 per tonne.