Aspire Mining signs agreement to advance Erdenet to Ovoot Railway

Aspire Mining announced that it had signed a binding memorandum of understanding with a Chinese firm to advance the Erdenet to Ovoot Railway Project in Mongolia.

The Erdenet to Ovoot Railway is a necessary component for the development of Aspire’s Ovoot Coking Coal Project, the second largest coking coal project by reserves in the country.

The memorandum was signed with China Gezhouba Group International Company Limited (CGGC) and commits CGGC to completing the second stage of the bankable feasibility study.

David Paull, the managing director of Aspire, commented, “Aspire is very pleased to be able to add a very large and experienced sponsor for the Erdenet to Ovoot Railway Project.

“Being able to attract a large and significant engineering and construction company such as Gezhouba provides clear affirmation of the importance and role of the Ovoot to Erdenet Railway in fulfilling Mongolia’s potential to become a transit corridor for China-Europe Trade.”

This binding memorandum builds on a nonbinding agreement signed between the parties in June 2017.

Under the current memorandum, CGGC agreed to complete the second and final stage of the project’s feasibility study by March 31, 2018.

As part of the conditions, CGGC can provide additional equity investment in Northern Railways, Aspire’s subsidiary focused on railways.

The Erdenet to Ovoot Railway is 547 kilometers long, forming a part of the Northern Rail Economic Corridor connecting China and Russia through Mongolia as part of China’s One Belt One Road Policy.