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The MoU covers a commitment from New Asia to buy up to 250,000 tonnes per year of oxidised coal as well as cooperation with Aspire to develop the necessary transmission infrastructure connecting the Ovoot project directly with the Zavkhan Power Station.
The agreement also covers the supply of 35 megawatts of power to the Ovoot project.
The Zavkhan Power Station is about 70km south of the Ovoot project.
New Asia has received a concession to build, own and operate the Zavkhan Power Station to supply northern Mongolia with power.
The company is building the station, which is expected to be commissioned in late 2015.
The Ovoot project will produce small quantities of oxidised non-coking coal as part of tis mine plan.
This coal would otherwise have been considered waste material.
The oxidised coal is not included in the Ovoot project’s 255Mt JORC 2012 probably coal reserves.
Aspire is targeting first production of 5 million tonnes per annum at Ovoot in 2018, subject to funding, approvals, licences and the construction of rail infrastructure.
