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Summary
- Aspire Mining Limited has been focussed on advancing Definitive Environmental Impact Assessment (DEIA) which would allow the Company’s access to the site area for starting the ground activities.
- The Company is pursuing productive engagement with the local communities, which would back progressing DEIA and Definitive Feasibility Study for Ovoot Early Development Project (OEDP).
- Aspire prepared a comprehensive operating plan, budget, and financial model along with the identification of operating cost savings potential concerning truck types for mining and truck-trailer combinations for delivery of coal to the rail terminal.
Leading pure-play metallurgical coal project developer, Aspire Mining Limited (ASX:AKM) has been significantly devoted to kickstart the site works at its Mongolia-based Ovoot Coking Coal Project (OCCP). The coal-rich grounds of Mongolia and its proximity to China has been bolstering the strategic endeavours of the Company. Powered by the lucrative opportunities enveloping its 100% world-class OCCP project, Aspire has carried out several undertakings that further encourage the project’s growth prospects.
The Company is currently pursuing a range of activities directed towards Definitive Environmental Impact Assessment (DEIA). Significantly, DEIA will pave the way for commencing the site works at the project. Aspire Mining is trying to get access to the project license area so as to complete pre-development activities, such as geotechnical, infill, and hydrological drilling focused on the starter pit area.
ALSO READ: Aspire Mining’s Well in Advance Endeavours Gearing Up for Future Production Plans
During the June Quarter, a detailed operating plan, budget, and financial model were formulated for evaluation and Board, financing ,and development decisions.
DETAILED DISCUSSION AT: Aspire Mining’s Quarterly Report Card Shining Light on Impressive Strategic Focus
As the Company steers forwards on the back of robust undertakings and strategic developments, let us explore the relevance and critical developments around DEIA.
Source: AKM ASX Update, Dated 29 July 2020
Lens through Definitive Environmental Impact Assessment (DEIA)
The ongoing efforts concerning DEIA are targeted at investigating the positive and negative implications of the Ovoot Cooking Coal project on natural, social, and individual aspects.
The Company is anticipating the key approval from the Ministry of Environment concerning for the DEIA, incorporating information sharing and engagement of local stakeholder, ethnological surveys, flora and fauna surveys and social impact assessments.
Preliminary draft for the DEIA was prepared and circulated amongst relevant stakeholders in June 2020. However, the Government’s ban on a public meeting in response to the pandemic threat has held DEIA submission to the Ministry of Environment.
Productive Engagement with Local Communities
The Company is progressing its constructive engagement with the local communities as well as Tsetserleg soum Government where the project is stationed. The local community engagement holds a significant role in successfully completing DEIA. It would also assist the Company in gaining the necessary approvals needed to advance the OEDP Definitive Feasibility Study.
Aspire Mining has significantly contributed to local communities and been involved in varying endeavours focussed on the benefit of the local people. Amidst the COVID-19 crisis, it made donations to local medical facilities for masks, thermometers and protective clothing catered towards supporting the local preparations against the impacts of the pandemic.
It also earlier supplied 80 tonnes of feed to the local herder communities at the request of the Local Government. Significantly, the massive snowfall at the start of 2020 had resulted in substantial livestock losses through lack of feed.
Special Purpose Road
The Company also has been involved in the construction of the special purpose road that has significant local communities-associated benefits.
Notably, the OEDP apart from involving an open pit development of the OCCP also includes yearly trucking up to four million tonnes of washed coking coal along the special purpose road through to the nearest railhead at Erdenet (560 kilometres).
The road encompasses two crucial local communities’ benefits:
- Allowing 200 kilometres sealed road connection between the Khuvsgul capital of Murun and Mogoin Gol community. The Mogoin Gol community lies adjacent to OCCP.
- Ensuring coal transportation from Murun to Erdenet along the special purpose road. The diversion of the traffic from the existing sealed road to the purpose-built road is dedicated to local and tourist traffic between the two cities.
Khuvsgul airmag Government studied the road alignment between Mogoin Gol to Erdenet and also included it in the 2030 Road Development Plan of the airmag. The approval would foster community engagement of the Company with each of the soums that lie along the path. It would lay the grounds for the approval of the final Ministry for aligning and completing a definitive engineering study.
Aspire Mining has utilised the Covid period for optimising operating plans and costings targeted towards improving the economics of the OCCP. The Company has identified operating cost savings potential concerning truck types for the purpose of mining and truck-trailer combinations for delivery of coal to the rail terminal.
On 3 September 2020, AKM stock is trading at $0.081 (AEST:11:21pm). The stock has generated the price-return of ~15% in the past three months.
