Mongolian metallurgical coal explorer and infrastructure company, Aspire Mining Limited, is pleased to announce the execution of the Concession Agreement to build and operate the Erdenet to Ovoot railway (Rail Project) has been completed during signing ceremonies in Mongolia and China with authorised representatives of the Government of Mongolia (GOM) Investment Agency, Aspire, Northern Railways LLC (Northern Railways), China Railway 20 Bureau Group Corporation (CR20G) and China Railway First Survey & Design Institute (FSDI).
Northern Railways now has 18 months to complete a number of conditions precedent required to commence construction of the Rail Project which include the completion of a bankable feasibility study, EPC contract, connection agreement to existing railway at Erdenet, financing, licences and permits necessary to construct and operate the Rail Project.
Northern Railways are exclusively engaged with CR20G and FSDI in relation to EPC contract negotiations and the completion of the bankable feasibility study respectively. Both CR20G and FSDI are subsidiaries of Fortune-500 listed China Railway Construction Corporation (China Railway) who is also China’s largest rail construction organisation.
The first stage of the bankable feasibility study is currently being completed which was recently funded through the commitments of a US$600,000 loan to Northern Railways and US$200,000 placement in Aspire by Northern Railways advisor, Signum Resources Corporation (Signum).
The Rail Project spans 547 km and forms part of Mongolia’s Rail Policy to provide rail access to its northern provinces through the extension of its existing rail network from Erdenet to the Russian/Mongolian border at Arts Suuri with a Russian connection planned to Kyzyl (refer Figure 3). At full operation the Rail Project will have capacity to move 30 Mtpa of bulk commodities, agricultural, general and passenger freight including transit freight between Russia and China.