Aspire Mining’s rail subsidiary Northern Railways has received a formal letter from the Mongolian Government confirming that a multi-departmental working group has been established to negotiate a rail concession for the Erdenet to Ovoot Railway. The letter was received from the Mongolian Investment Agency, which is the body charged with negotiating concession agreements, and is in accordance with a Cabinet resolution.
The working group comprises representatives from the Ministries of Roads and Transportation, Environment, Finance and Investment Agency.
In accordance with the resolution the working group has invited Northern Railways to commence a direct negotiation around the terms and conditions for the
Rail Concession Agreement along with a request for draft agreements to consider.
In order to support the granting of the concession agreement to Northern Railways, the company has entered into a consortium agreement with China Railways Construction Corporation subsidiaries, China Railways 20 Bureau Group Corporation and China Railways First Survey & Design Institute Group. This agreement provides Northern Railways with an exclusive licence to use patented intellectual properties which will be required to design and construct the railway.
Aspire’s managing director David Paull says, “It is an exciting period for the company as it can now formally commence negotiations for the Erdenet to Ovoot rail concession. It is also of great benefit for a junior ASX-listed company such as Aspire to have the full technical and engineering weight of China Railways 20 Bureau Group Corporation behind it to support the negotiations for a rail concession with the Mongolian Government.”