Aspire buys stake in Nuustei coal project

Australian-listed developer of the Ovoot coal project in Mongolia, Aspire Mining, has bought a 50% interest in the Ekhgoviin Chuluu Joint Venture (ECJV) from Xanadu Mines. The move strengthens the company’s existing alliance with Noble Group, which owns the remaining 50% of the ECJV, as “fits neatly with Aspire’s strategy to explore and develop Mongolian metallurgical coal projects,” the company said in a statement.

The ECJV owns a 60% stake in the Nuurstei coal project in northern Mongolia with an option to increase its ownership to 90%. The joint venture acquired the project, which is located 10 km from the Khuvsgul provincial capital of Moron, in mid-2011 with subsequent test work showing low volatile bituminous coal with moderate to high ash levels and low sulfur.

Nuurstei coal project location in northern Mongolia.

The project is also a relatively short trucking distance to the proposed Northern Rail Line being developed by Aspire’s subsidiary’s Northern Railways LLC. The Northern Rail Line would be an extension to the existing Trans-Mongolian Railway from the current terminus at Erdenet through to the Ovoot coal project.

“Aspire is very pleased to become involved in developing the Nuurstei project in partnership with the Noble Group,” said David Paull, managing director of Aspire. “There are many potential synergies with the Ovoot [project], not the least of which potentially being an important initial customer for Northern Railways LLC”.

Written by Jonathan Rowland

Read the article online at: https://www.worldcoal.com/coal/13062014/aspire_buys_stake_in_nuustei_coal_project_coal977/