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Aspire Mining’s (ASX: AKM) action-packed FY21 paints a bright outlook 

Highlights

  • During FY21, Aspire Mining undertook several initiatives to develop metallurgical coal assets at Ovoot Coking Coal Project. 
  • Many aspects of a DFS for OEDP, including mine engineering, wash plant, materials handling, and road transport solutions, progressed. 
  • Additional coal sizing tests utilizing several flow sheets have been undertaken to confirm physical characteristics through various wash plant technologies. 

Aspire Mining Limited (ASX: AKM) has unveiled its full-year statutory accounts for the year ended 30 June 2021. The Company remained committed to advancing Ovoot Coking Coal Project (OCCP) and undertook several initiatives to steer the project towards developing metallurgical coal assets.   

RELATED ARTICLE: Aspire Mining Beefs up Ovoot project development, mandates Financial Advisor 

Notably, Aspire owns a 100% interest in the large scale, world-class Ovoot Coking Coal Project and a 90% interest in the Nuurstei Coking Coal Project. 

Recent progress has been achieved against the backdrop of the COVID-19 restriction, which prevented the Company from conducting ground-based activities. Nevertheless, permitting processes has made significant headway since other aspects of a Definitive Feasibility Study (DFS) for the Ovoot Early Development Project (OEDP), including mine engineering, wash plant, materials handling, and road transport solutions, continued during the period.  

RELATED ARTICLE: Aspire Mining (ASX: AKM) brings off multifaceted progress during June Quarter 

Re-optimizations of the mine plan used in the PFS 

The OEDP consists of Mining low ash and high yielding coal from a starter pit within the previously defined Ovoot orebody and road transportation of the coal to the Erdenet rail connection. Under the OEDP, a phased development plan to support production rates at Ovoot will also be matched to forecast logistics capacities through to end customers in China and Russia. 

During the FY21, the Company re-optimized the mine plan used in the OEDP Pre-Feasibility (PFS) mine plan. On this account, Aspire undertook production resequencing and indicated significant mine cost savings vis-à-vis PFS by using different combinations of excavators and mine haulage trucks. 

Coal sizing tests and FEED Study to bolster OCCP development 

Additional coal sizing tests utilizing several flow sheets have been undertaken to confirm physical characteristics through various wash plant technologies.  

Ovoot Project, Coking Coal, High Quality coal, Aspire Mining 

Source: AKM Update, dated 27 May 2021 

ALSO READ: Aspire Mining (ASX:AKM) on a fast-paced growth track with high quality Fat Coking Coal 

Moreover, Aspire engaged Sedgman Pty Limited to conduct Front End Engineering and Design (FEED) Study for the OEDP Coal Handling and Processing Plant, which recently saw the completion of First Phase in September Quarter.  

The Company also kicked off the FEED Study of the Erdenet Rail Terminal with local engineering group O2 Mining Limited, where coal is received by truck and loaded onto rail wagons. The first phase of FEED Study on ERT was completed recently.  

Both engineering activities will assist in providing accurate capital and operating cost assessments for the DFS. 

READ MORE: Aspire Mining Marching ahead with FEED Study progress on Erdenet Rail Terminal 

Actional packed developments on road design and engineering 

The Company also invested significant time and effort in road design and engineering for the 560 kilometres road between Ovoot and Erdenet. Aspire considers it an area of significant potential cost saving as trucking cost per tonne is considerably higher than the forecast mining cost per tonne of product. 

READ MORE: Aspire Mining advances Ovoot Project development with the completion of Stage 1 FEED Study 

The associated development undertaken during FY21 included re-examining road pathways and modelling various truck and trailer combinations to optimize time, fuel cost, and capital costs for trucks and road construction.  

Sustainable Activities, Community Focus, Ovoot Basin, Aspire Mining

Source: AKM Update, dated 30 July 2021 

Bottom Line 

With a flurry of developments effectively steering the Company to develop metallurgical coal assets at the OCCP project, the financial year FY21 remained milestone rich in terms of permitting processes progress. Meanwhile, Aspire has also remained active on the CSR front and maintained a strong local community engagement programme in line with its sustainability goals to improve health and education outcomes for the local communities in which it operates. 

AKM shares traded at A$0.081 on 29 September 2021. 

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