Aspire Updates Ovoot Coal Resource to 219Mt, Reserve to 130Mt as Construction Tenders Progress

Project Development Momentum

Aspire Mining Limited (ASX: AKM) has reported robust progress in the December 2024 quarter on its flagship Ovoot Coking Coal Project (OCCP) in Mongolia. The company has initiated tender processes for the design and construction of key infrastructure, including the Coal Handling and Preparation Plant (CHPP) and the Erdenet Rail Terminal (ERT), with multiple international and local vendors confirming intent to bid. This marks a critical step toward advancing the project’s construction phase, targeted to commence in the second quarter of 2025.

Complementing infrastructure development, detailed engineering design for a permanent camp to house construction and operational personnel has begun, with completion expected within 2025. This infrastructure is essential to support the scale of operations envisaged for the OCCP.

Resource and Reserve Upgrades

The company updated its JORC (2012) coal resource estimate to 219.4 million tonnes, including 99.5 million tonnes measured and 100.9 million tonnes indicated. The coal reserve estimate was also revised upward to 130.1 million tonnes, with 76.8 million tonnes proved and 53.3 million tonnes probable. These figures underpin the project's robust economics and provide a solid foundation for financing discussions.

SRK Consulting continues to prepare an Independent Technical Report (ITR) to support debt financing efforts, with final review scheduled for February 2025. This report will be pivotal in validating the project's technical and economic assumptions to potential lenders.

Market Engagement and Strategic Positioning

Aspire’s management team undertook visits to key potential customers in northern China, including both state-owned and private enterprises, confirming strong interest in the unique 'fat' coking coal from Ovoot. This premium coal type is prized for its performance in coke blends, distinguishing it from other Mongolian coals and positioning Aspire well amid ongoing supply constraints in China’s steel industry.

Despite a recent decline in global coal prices driven by softer steel demand and economic headwinds, Aspire’s proximity to China and the quality of its product offer a competitive advantage. The company is actively preparing marketing samples from adjacent mines to facilitate customer testing and advance sales negotiations.

Infrastructure and Financing Initiatives

Significant progress has been made on the planned road infrastructure project, which will serve both public use and coal transport needs. Following the completion of the initial pre-screening phase under Mongolia’s new Public-Private-Partnership (PPP) law, Aspire has entered the detailed analysis phase with government agencies. The company has engaged international legal counsel Mayer Brown to assist with negotiating a PPP agreement structured to attract international financing.

Notably, the commissioning of the Toson Thermal Power Plant nearby enhances the electricity supply capacity for the Ovoot site, reducing capital and operating costs related to power. This integration into Mongolia’s central power grid is a strategic development that supports the project’s operational efficiency.

Corporate and Financial Position

Aspire appointed Tristan Garthe as Chief Financial Officer in November 2024, bringing over two decades of mining sector financial expertise. This leadership strengthening aligns with the company’s transition from exploration to production.

Financially, Aspire ended the quarter with USD 4.6 million in cash and USD 9.1 million in bonds, bills, and term deposits, maintaining a solid liquidity position. The company’s proactive investment management generated returns that partially offset operating expenditures during the quarter.

Community and ESG Commitments

Beyond operational progress, Aspire continues its commitment to local communities through initiatives like the Green Fodder Program, supporting traditional herders in Mongolia’s harsh winters. The company also offers English language and computer skills training, reinforcing its dedication to sustainable and responsible mining practices aligned with global ESG standards.