Aspire proves northern Mongolia's met coal potential

ASPIRE Mining posted positive results today for a prefeasibility study of its flagship Ovoot metallurgical coal project in remote northern Mongolia.
Aspire proves northern Mongolia's met coal potential Aspire proves northern Mongolia's met coal potential Aspire proves northern Mongolia's met coal potential Aspire proves northern Mongolia's met coal potential Aspire proves northern Mongolia's met coal potential

Aspire's Ovoot coking coal project

Justin Niessner

The tenement was established as the third largest coking coal reserve in the country earlier this week with the announcement of its 178 million tonne maiden reserve.

The PFS, authorized by Xstract Mining Consultants, confirmed Ovoot as capable of producing 153Mt of high-quality coking coal over a 15-year mine life.

The company described Ovoot’s cashflow potential as “very positive”, estimating a life-of-mine earnings rate of $US68 per tonne of coking coal before interest, taxes, depreciation and amortization.

Only 20% of the Ovoot Basin has been explored by Aspire.

Aspire managing director David Paull said project was now in a position to be a leader in unlocking the emerging coking coal potential of northern Mongolia.

“Within a relatively short time period, Aspire has defined a globally significant coal project capable of producing high quality coking coal to meet long-term regional consumption requirements,” he said.

“The PFS results validate our progress to date, but also identify significant operation optimization and project upside.”

The study assumes completion of a multi-user rail line by 2016.

A separate rail prefeasibility study for the rail link has been approved by local authorities and discussion with potential financers for the line are underway.

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