Source: B2B AKM ASX announcement dated 29 January 2021
- Aspire Mining has been involved in offering sponsorship in education, sport, and health to ensure community engagement.
- The Company must finalise the Definitive Environmental Impact Assessment necessary for receiving approvals to commence ground activities.
- The road construction between the OCCP and Erdenet is being assessed, facilitating the convenient transport of coal cost-effectively.
Aspire Mining Limited (ASX:AKM) continues to progress effectively, focused on exploring and eventually developing its Mongolia-based metallurgical coal assets. The suit of events undertaken recently to advance the project in the face of COVID-19 related challenges has been impressive.
Activity in advancing Ovoot Project development remains limited owing to travel and meeting restrictions imposed by the Mongolian Government in response to the pandemic. Nevertheless, Company continues to make the most of the opportunities, extending its progressive steps across various fronts.
Let us explore the significant recent developments defining Aspire’s progress.
Source: Copyright © 2021 Kalkine Media Pty Ltd, Data Source: AKM ASX update, dated 12 March 2021
Local Community Engagement
Aspire Mining maintained consistent engagement with the local community by directed community benefit sponsorships in education, sport and health. The Company held discussions with families impacted by the mine site footprint and commenced executing compensation agreement after consultation of their inclination to remain in-situ instead of relocating.
Aspire Mining is looking forward to local community engagement meetings for finalising the DEIA (Definitive Environmental Impact Assessment) (DEIA), necessary for the completion and approval ahead of the commencement of ground activities consisting of infill drilling.
Source: AKM ASX Update, dated 29 January 2021
Mapping out Pathway to deliver Coking coal
The OEDP Pre-Feasibility Study (PFS) formulated by FMS LLC aimed at the assessment of a production plan to produce up to nearly four metric tonnes of coking coal annually on the basis of trucking a washed coal product to the current railhead in Erdenet.
A comprehensive time and task schedule were finalised, sketching the financial, regulatory, and commercial route to supplying washed coking coal to final users. The scheduled validates the availability of a path that would allow delivery of washed coking coal from access to the project area within the timeframe of 18 months.
Assessment of Mine Trucks
The OEDP (Ovoot Early Development Project) PFS assumed a contracted fleet’s usage, including conventional Off-Highway Trucks for the mining operation. Mine trucks’ first principles assessment is complete via the use of OHTs and Extra Heavy Commercial Vehicles (EHCVs) performance data provided by their suppliers.
EHCVs have yielded relatively better results in simulations and seem to be well suited to mine volume requirements, especially in the initial phase of the mine development.
EHCVs not only involve potentially lower machine operating unit costs but also enable other indirect cost benefits through reduced stripping ratios, smaller supporting infrastructure constraints and lesser ancillary and support equipment.
Road Between OCCP and Erdenet
The cost of transportation via road transportation from the OCCP to the Erdenet-based nearest railhead represents the most significant overall operating costs component.
The Company is currently assessing the road construction between the OCCP and Erdenet based on revised road route and design assumptions. It would facilitate conveniently trucking coal. It would underpin finalisation of Feasibility Study and Detailed Design for approval by MRTD (Ministry of Road and Transport Development)
Aspire Mining has now adopted a fundamentals approach for establishing and understanding the cost of transports via trucks reflecting usage of world-renowned technologies and efficiencies to reduce greenhouse gas emissions along with operating expenses.
AKM has a strong cash position towards the end of the half year. It held AUD 35.1 million in cash and term deposits. Cash is structurally used for funding development of OCCP.
AKM shares traded at AUD 0.100, up by 6.382% on 19 March 2021.