Mongolian metallurgical coal explorer and infrastructure company, Aspire Mining Ltd has entered into a memorandum of undertaking (MoU) agreement with a Mongolian government agency to mine and purchase raw coal from an existing mine adjacent to the ECJV’s Nuurstei metallurgical coal project.
The adjacent coal mine is currently being operated to produce small quantities of raw coal for local thermal consumption.
Analysis of the adjacent coal mine has indicated that it has similar hard coking coal qualities to the Nuurstei project coal. The strategy is to wash this purchased coal at Nuurstei for delivery of a washed coking coal to customers in China. Regular purchases are conditional on the establishment of the Nuurstei coal project wash plant.
The coal purchase pricing will be based on the raw coal pricing received by the owner from existing local sales.
Aspire is to provide technical and other assistance as required, including facilitating the mining of 16 000 t of raw coal in 2017 for the adjacent mine to meet its local sales commitments.
The ECJV owns 90% of the Nuurstei project. The ECJV is 50% owned by Aspire and 50% by Noble Group with Aspire having the right to 30 June 2017 to acquire the Noble Group interest for US$1 million and a future royalty.
Aspire’s Managing Director, David Paull, said: “the ability to purchase material quantities of coal from an existing mine adjacent to the Nuurstei coking coal project helps in de-risking development and is a further important step in the continuing commercialisation of the Nuurstei coking coal project.”
Read the article online at: https://www.worldcoal.com/exploration-and-development/03052017/aspire-signs-mou-agreement-to-mine-and-purchase-coal-to-support-nuurstei-project/