Aspire Mining Secures $70M EPC Contract, Eyes 2027 Coal Exports
Aspire Mining has taken a major step forward in developing its Ovoot Coking Coal Project by signing a $69.9 million EPC contract and gaining government backing for a key highway project, positioning the company for first coal exports by late 2027.
- Executed $69.9 million EPC contract with CCTEG-IEC for coal handling infrastructure
- Ovoot project holds 219.4 million tonnes of coal resources with a 31-year mine life
- Mongolian Cabinet endorses Murun–Uliastai Highway PPP overlapping planned haul road
- Strong financial position with $5 million cash and no debt
- Tender for highway project passes preliminary evaluation, advancing infrastructure plans
Project Milestone Secured
Aspire Mining Limited (ASX – AKM) has marked a significant milestone in the development of its Ovoot Coking Coal Project (OCCP) in Mongolia, executing a $69.9 million engineering, procurement, and construction (EPC) contract with the International Engineering Company of China Coal Technology and Engineering Group Corp (CCTEG-IEC). This contract covers the construction of the Coal Handling and Preparation Plant (CHPP) and the Erdenet Rail Terminal (ERT), critical infrastructure components that underpin the company’s pathway to first coal production and export targeted for the fourth quarter of 2027.
The EPC contract not only reduces capital cost uncertainty but also signals a clear commitment to advancing the project’s development, which boasts a JORC-compliant total coal resource of 219.4 million tonnes and reserves of 130.1 million tonnes. These reserves support a forecast mine life of 31 years and an estimated net present value (NPV10) exceeding US$1.5 billion, underscoring the project’s robust economic potential.
Strategic Infrastructure and Government Support
Complementing the EPC contract, the Mongolian Cabinet has endorsed the Murun–Uliastai Highway Project as a Public-Private-Partnership (PPP), with the proposed highway alignment overlapping the haul road planned by Aspire for the Ovoot project. Aspire has successfully passed the preliminary tender evaluation stage for this highway project and submitted its tender proposal, positioning the company to negotiate final terms in the first quarter of 2026.
This government-backed infrastructure initiative is pivotal, as it will facilitate efficient transportation logistics for the coal project and provide broader public benefits. Aspire’s engagement with the PPP Centre and potential international investors reflects a strategic approach to securing the necessary support and financing for both the highway and the mining operations.
Financial Health and Operational Readiness
At the end of the quarter, Aspire reported a strong balance sheet with approximately US$5.0 million in cash and no outstanding debt. Development expenditure of US$3.1 million during the quarter primarily related to the advance payment for the EPC contract, enabling detailed design work and localisation efforts to commence. Contractor mobilisation is planned for the first quarter of 2026, with due diligence underway for vendor financing arrangements that could cover 60% of the EPC contract value.
On the marketing front, Aspire continues to engage potential coal off-takers in northern and northeastern China, aiming to secure Memorandums of Understanding and sales agreements. Market prices for comparable coking coals remain strong, providing a favourable backdrop for the project’s commercial prospects.
Community Engagement and ESG Commitment
Aspire has maintained active community relations through consultations with local citizens and government representatives in the Khuvsgul province. The company has supported cultural initiatives, sports sponsorships, and educational scholarships, reflecting its commitment to social responsibility. Additionally, Aspire continues to prioritise environmental, social, and governance (ESG) standards as it transitions from permitting to construction, aiming to operate sustainably and deliver shared prosperity to local communities.
Meanwhile, the transition of share ownership from Talaxis Ltd to NordSteppe Private Investment Fund LLC is progressing on schedule, expected to complete by March 2026, further solidifying the company’s strategic investor base.
Bottom Line?
Aspire’s progress on infrastructure contracts and government partnerships sets the stage for a critical construction phase, but execution risks and financing outcomes will be key to watch in 2026.
Questions in the middle?
- Will vendor financing through Sinosure be secured to cover the majority of the EPC contract cost?
- How will the final terms of the Murun–Uliastai Highway PPP agreement impact project timelines and costs?
- What are the prospects for locking in long-term coal off-take agreements amid evolving market conditions?
