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ASPIRE MINING CLOSER TO UNLOCKING OVOOT RICHES WITH GOVERNMENT RAIL SUPPORT

Aspire Mining Ltd. has received support from the Mongolian government with its proposed Erdenet to Ovoot railway included in its List of Approved Projects.
This 547 kilometer section of the Northern Rail Line connects its fully-owned Ovoot coking coal project to the Trans-Mongolian Railway and is key to its development. The listing follows recent agreements between Russia, China and Mongolia to expand the Trans-Mongolian Railway to assist Mongolian exports and transit freight between Russia and China. Inclusion of the USD 1.3 billion rail line on the Concessions List is a major milestone for Aspire to securing the rail transport to deliver coking coal to international markets.
Under Mongolia’s Concession Law, a tender will be called for interested parties to bid for the concession right to build-operate-transfer. Aspire said it encouraged other interested parties to participate and would welcome participation in a consortium approach.
“The inclusion in the official list of concessions for this important piece of infrastructure in Northern Mongolia unlocks the opportunity for the development of not only the Ovoot Project, but other resource projects in the area and to support agricultural expansion in the region,” managing director David Paull said.
Northern Railways has been progressing the USD 1.3 billion Erdenet to Ovoot railway development with several studies completed to date. A pre-feasibility study was completed in April 2013, with an on-the-ground field study completed in September 2013 confirming the engineering and operational viability of the railway. The rail line is designed for total capacity to carry 22 million tons per annum and will also carry passengers, general freight, agricultural products and bulk commodities.
Aspire has received several non-binding financing expressions of interest from a number of parties totaling USD 1.3 billion.

Source: Proactive Investors