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Summary
- Aspire Mining has been significantly engaged in preparing financial, operation and budget models that would aid in spurring commercial production of Ovoot coking coal production following the receipt of access to the OCCP.
- The Company amidst COVID-19 Government restrictions was committed towards the evaluation of the phased development plan scenarios, aimed at reducing upfront capital cost along with minimising logistics chain risk.
- Continued engagement with the local communities is being pursued, which would underpin the necessary approvals for advancing the OEDP Definitive Feasibility Study.
Making headway, piggybacking the lucrative growth prospects and its strategic orientation, Aspire Mining Limited (ASX:AKM) is lurking in the winds to kickstart its commercial production of coking coal at the flagship Ovoot Coking Coal Project (OCCP). Focussed on redeeming the exploration potential of the OCCP situated in northern Mongolia, the Company undertook significant activities bolstering fast venture into commercial production in the shortest possible time frame once it has been granted the access to the OCCP.
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Meanwhile, the Australian-listed explorer has also been committed towards the completion of the Definitive Environment Impact Assessment (DEIA) and is focussed on advancing the local community engagement. While the COVID-19 restrictions obstructed the flow of operations, the Company channelled its efforts in the strategic direction that could aid in the upcoming activities of the project
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With this backdrop, let us unveil some of the recent events that are catalysing Aspire Mining’s exploration potential in the coal-fertile lands of Mongolia.
Operational and Financial Planning
Although the necessary community consultation meetings with the Mongolian Government imposing restrictions in response to COVID-19 include bans on large gatherings, the Company formulated a new detailed operating plan, budget and financial model for evaluation as well as for Board, financing and development decisions.
Furthermore, Aspire Mining has been substantially engrossed in undertaking further work directed at the evaluation of the phased development plan scenarios, with the objective to reduce upfront capital cost along with minimising logistics chain risk. The Company indicated that the recent development would accelerate its further process, aiding it to get into commercial production as quickly as possible once granted access to the OCCP.
Additionally, post the completion of its plan and budget premised on first principles, Aspire investigated the baseline assumptions viz-a-viz transportation equipment and mining equipment for further improvement. It has untapped opportunities for more detailed evaluation, which would include proven and low-cost mine and trucking solutions from Tier 1 manufacturers. Furthermore, the deployment of truck-trailer combinations on the road would also be included through the utilisation of increased gross combination mass for enabling substantial safety, economic, environmental and community benefits.
Advancing Environmental Impact Assessment (DEIA)
Targeting to gain the necessary approvals for furthering the Ovoot Early Development plan (OEDP) Definitive Feasibility Study, Aspire continues to pursue productive engagement with the local Tsetserleg soum Government as well as communities where the OCCP is stationed.
ALSO READ: Aspire Mining’s Ovoot Early Development Project: Nods and Approval Forging the Path Ahead
For DEIA, Aspire is eyeing the approval from the Ministry of Environment, which is yet awaited. Significantly, it includes stakeholder information sharing and engagement, ethnological surveys, flora and fauna surveys, and social impact assessments
In June 2020, a preliminary draft of the DEIA was prepared and disseminated amongst relevant stakeholders. However, the Company indicated that in response to the COVID 19 threat, the Government has continued to prohibit public gathering deferring community meetings, which are deemed necessary before it submits the DEIA to the Ministry of Environment.
Focused on Special Purpose Road Development
The OEDP consist of an open-pit development of the Ovoot Coking Coal Project in conjunction with trucking washed coking coal up to 4 million tonnes per annum along a 560-kilometre special-purpose road through to the nearest railhead located at Erdenet.
ALSO READ: Aspire Mining Sailing Smoothly to Foster Robust Infrastructure for Coal Haulage
Kalkine Image (Data Source: AKM ASX Update)
Khuvsgul airmag government earlier studied the Mogoin Gol (Ovoot) to Erdenet road alignment and also incorporated it in the airmag’s 2030 Road Development Plan. Having gained the approval, the Company now needs final Ministry approval for the alignment and completion of the definitive engineering study.
As on 21 August 2020, AKM share closed the day’s trade at $0.082. The share price of the Company has appreciated by over 9% in the past month.
[Note: All currency is in AUD unless stated otherwise]
