The Ovoot Early Development Project:
The mine capex estimated at USD $260m for the Ovoot Project Development could potentially be funded from:
The current Probable Coal Reserve is 255 Mt for the Ovoot Project. The Ovoot Early Development Project Reserve in 53.8 mt over time and with the potential to lower running and logistics costs further, it is expected that more of the Probable Coal Reserve can be added to the OEDP open pit.
Delivering Ovoot Coal to the Mongolian and Russian rail networks will open up several markets which include China, Russia and Eastern Europe.
Aspire has previously entered into non-binding Memoranda of Understanding with Chinese companies for their potential purchase of up to 6.1 Mtpa of Ovoot coking coal. Additional interest has also been received from steel mills and coke plants located in Russia and Eastern Europe.
Ovoot is a relatively rare quality “Fat” coking coal displaying very high levels of caking and plastic properties making it a suitable blending product with lower quality coking coals. Its high value in use will see it attract prices similar to hard coking coal prices.
Ovoot coking coal is particularly in demand within the Chinese market due to its high value in use as a blending coal. Studies conducted by the Company have shown that when relatively small amounts of Ovoot coking coal are blended with low or non-coking (oxidised coal) that it can upgrade the poor quality coal to a coking coal equivalent, which in turn creates a better quality coke.
First production is reliant on premitting and funding of the Ovoot Early Development Project.
The Ovoot Project and connecting road would take approximately 18 months to complete construction and it would be structured to be completed in line with road commissioning.