Aspire Mining advises that the Erdenet to Ovoot section of the Northern Rail Line has been included on the Mongolian Government Concession List. This is a list of approved for development projects that are now available for a concession agreement with private interests to provide funding.
The addition of this alignment onto the concession list represents a major milestone in the development pathway for Aspire’s wholly-owned Ovoot Coking Coal Project which is capable of producing 188 million tonnes of saleable blending coking coal over a 21 year life with rail access.
Northern Railways LLC has been progressing the Erdenet to Ovoot railway development and has completed several studies to define the alignment. 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 addition of the proposed railway to the concession list now required the Mongolian Government to call for interested parties to build the Erdenet to Ovoot section of the Northern Rail Line corridor planned to connect Erdenet to Arts Suuri at the Russian/Mongolian border. Following award of the concession right the successful party will then enter into negotiations with the government for a concession agreement which sets out the commercial terms of the concession.
Mongolia’s Concession Legislation allows private entities, under a Concession Agreement with the government, the ability to own and operate the railway and charge the necessary tariffs to provide an attractive rate of return for investors under a build-operate-transfer arrangement for the term of the agreement.