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Aspire Mining to supply coal to industrial park

World Coal,

Aspire Mining has signed an agreement with a Mongolian government entity to supply coal produced from the Ovoot project in Mongolia to the Sainshand Industrial Complex.

Sainshand agreement

Sainshand is the largest industrial development project in Mongolia. With this new agreement, the Ovoot project is now recognised alongside the Tavan Tolgoi coal operation as being a key supplier of raw materials to the Sainshand Park.

The agreement covers an intent by Sainshand Industrial Complex to enter into future purchase agreements for Ovoot Project coking coal and establishes a basis of information sharing prior to negotiation.

Coal railway

In order to supply the Sainshand Park with Ovoot Project coking coal, the Erdenet – Ovoot Project Railway connecting to the Trans-Mongolian Railway will need to be completed.

Northern Railways, Aspire’s Mongolian rail infrastructure subsidiary, has applied to the Mongolian Government for a rail concession over the Northern Rail Line.

The rail would unlock the significant monetary value of Aspire's Ovoot coking coal by allowing cost efficient transportation.

Industrial complex

The Sainshand Industrial Complex is a Mongolian government entity established to oversee the development of the Sainshand Industrial Park.

Fluor Corporation has designed the Sainshand Park infrastructure, and the complex will house both coke and steel plants, amongst other industries.

Edited from various sources by Katie Woodward

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