Sponsored

Aspire Mining (ASX: AKM) Awards Contract for CHPP Study to Sedgman

Summary

  • Aspire Mining has awarded contract for FEED Study on Coal Handling Preparation Plant (CHPP) infrastructure to Sedgman Pty Limited.
  • The study on CHPP infrastructure would underpin the commencement of operations at Mongolian Ovoot Coking coal project
  • FEED Study is planned to be conducted in a phased approach, over around five months.

Aspire Mining Limited (ASX: AKM) appears to be on a fast-track mode to advance the developments at Mongolian Ovoot Coking coal project with contract awarded to Sedgman Pty Limited to prepare a Front-End Engineering and Design (FEED) study on CHPP infrastructure.

Sedgman Pty Limited is a wholly owned subsidiary of CIMIC Group and a leading provider of integrated minerals processing solutions. It also holds extensive experience in delivering world class processing solutions.

ALSO READ: How Aspire Mining (ASX:AKM) is Going from Strength to Strength with Ovoot Project Developments

Notably, FEED Study in relation to the Coal Handling and Preparation Plant (CHPP) is garnered towards supporting the commencement of operations at the Company’s wholly owned metallurgical coal asset, Ovoot Coking Coal Project (OCCP) in Mongolia.

Significantly, the Company received proposals from several reputable engineering firms for delivery of FEED study.

ALSO READ: Aspire Mining soars 22% on confirmation of high-quality fat coking coal at Ovoot

Sedgman Motivated on delivering value

Sedgman, specialising in designing, constructing and operating minerals processing facilities also holds Mongolian specific experience. Sedgman intends on leveraging its domestic experience and engage local Mongolian subcontractors for the purpose of FEED Study delivery while taking into account appropriate consideration of in country requirements.

ALSO READ: Aspire Mining (ASX: AKM) keen to unlock Mongolian Mining potential

FEED Study to be steered through a Phased Approach

Aspire undertook a detailed and systematic tendering process to evaluate proposals received from numerous reputable firms. Post the evaluation, Sedgman was selected to formulate  a FEED study on the CHPP infrastructure.

Aspire has reported that FEED Study will be conducted in a phased style, over around five months.

Stage 1 will consist of trade-off analyses, which will aid in identifying the most appropriate concepts and technologies. It will take approximately 8 weeks.

Stage 2 will commit towards the agreed path, with delivery of accurate capital and operating costs estimates, as well as designs to allow tendering for construction.

Under schedule of rates arrangement, Coal developer Aspire intends to wrap up the work with around A$0.6 million of total estimated expense.

ALSO READ: Casting an eye on Aspire Mining's All-Round Progress during March 2021 Quarter

Aspire and Sedgman to focus on broad spectrum of developments

The intended CHPP infrastructure will be based on existing modular designs while enabling low impact processing of ~1.5 Mtpa ROM (Run-of-Mine) coal. The infrastructure boasts further expansion capacity. The significant design criteria for CHPP infrastructure comprises stringent dust control as wel low energy and water consumption.

ALSO READ: Aspire Mining (ASX: AKM) Covering all the Bases to expedite developments of Mongolian Coal Assets

Aspire intends to work with Sedgman with the focus on discovering opportunities for the CHPP infrastructure construction to enable qualification for export credit finance assistance.

COVID-19 infections and control measures have brought forth several difficulties in Khuvsgul and Mongolia. Nevertheless, Aspire continues to work related to permitting, advance engineering, and financing work on rail terminal, equipment, road and other infrastructure.

AKM shares traded at A$0.077 on 31 May 2021.

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK