Aspire Mining transitions to construction phase for its Ovoot Coking Coal Project with a $69.9 million EPC contract, government-backed highway PPP endorsement, and full commercial rights restored despite a 2025 net loss.
- US$69.9 million lump-sum EPC contract executed
- Murun–Uliastai Highway PPP endorsed by Mongolian Cabinet
- Exclusive marketing rights regained after Talaxis stake sale
- 2025 net loss driven by non-cash foreign exchange impacts
- Focused on securing project financing and construction start
Major EPC Contract Marks Construction Kickoff
Aspire Mining Limited (ASX:AKM) took a decisive step in 2025 by signing a US$69.9 million Engineering, Procurement and Construction (EPC) contract with CCTEG-IEC for the Coal Handling and Preparation Plant (CHPP) and Erdenet Rail Terminal (ERT) coal handling infrastructure. This fixed-price contract, executed in December, locks in capital certainty and transitions Aspire from development to active construction, targeting first coal production in late 2027.
The contract includes vendor financing covering 60% of the price, supported by China Export & Credit Insurance Corporation (Sinosure), which defers a significant portion of upfront capital outlay. Detailed design work commenced immediately, with contractor mobilisation slated for Q2 2026. This milestone follows a rigorous international tender process through the first three quarters of 2025 and reflects a pragmatic reduced-capex development strategy involving rental mining equipment and outsourced transport to improve financing viability.
The EPC contract execution significantly de-risks the project’s capital expenditure and schedule, setting a clear path for infrastructure delivery essential to the Ovoot Coking Coal Project (OCCP).
Government Endorses Critical Highway Under PPP Framework
Equally pivotal was the Mongolian Cabinet’s formal endorsement in September 2025 of the Murun–Uliastai Highway Project to be developed under a Build-Operate-Transfer (BOT) Public-Private Partnership (PPP). This highway is crucial for coal haulage logistics, connecting the Ovoot mine to the rail terminal and broader markets.
By embedding the road within a government-approved PPP framework, Aspire mitigates sovereign and regulatory risks, removes the direct capital burden from its balance sheet, and enhances project financing prospects. Aspire lodged its tender submission post-December quarter and has passed preliminary selection, with final PPP agreement negotiations underway.
This endorsement dovetails with Aspire’s infrastructure plans and is expected to generate regional economic benefits through improved connectivity in northern Mongolia. The road commissioning aligns with the CHPP and ERT construction timeline, targeting 2027.
Commercial Rights Reclaimed and Marketing Efforts Intensify
Aspire regained exclusive marketing, fuel supply, and supply chain rights over the Ovoot and Nuurstei tenements following an off-market share transaction where Talaxis Ltd sold its 13.08% stake to NordSteppe Private Investment Fund LLC. In exchange for a 0.75% royalty on Ovoot coal sales, NordSteppe waived legacy contract rights, simplifying project economics and strengthening Aspire’s negotiating position with customers and financiers.
The company has actively engaged with Chinese end-users, including Jiuquan Iron & Steel, China Risun Group, and Hesteel Group, providing coal samples and advancing memorandums of understanding aimed at binding sales agreements. The premium quality of Ovoot’s ‘fat’ hard coking coal and its proximity to northern China via the Trans-Mongolian railway underpin a compelling market proposition.
Financial Performance and Governance Enhancements
Despite these operational advances, Aspire reported a net loss of $12.85 million for 2025, primarily due to non-cash unrealised foreign exchange losses from the strengthening Australian dollar against the US dollar. Excluding these effects, the company’s financial performance aligned with expectations amid disciplined capital management.
Cash reserves stood at around US$5 million at year-end, down from US$12.6 million in March 2025, reflecting initial EPC contract payments and ongoing site development. Aspire remains debt-free.
Board composition was strengthened with the appointments of Greg Millen and Zoljargal Dashnyam as independent non-executive directors, bringing expertise in infrastructure, law, finance, and ESG matters. Executive Chairman Achit-Erdene Darambazar’s election in September 2025 signals the board’s commitment to hands-on leadership during construction.
Sustainability and Community Engagement Embedded in Development
Aspire continues to prioritise sustainability, embedding environmental stewardship in project design through enclosed coal handling to prevent dust emissions, filter press dewatering to eliminate tailings dams, and reduced land use for road infrastructure. Regular environmental monitoring has established baseline data, with plans for participatory monitoring involving local communities.
Community engagement intensified throughout 2025 with consultations, sponsorships, scholarships, and local employment initiatives in Khuvsgul aimag. The company has committed to planting 10 million trees by 2030 as part of Mongolia’s national campaign.
Looking Ahead: Financing and Construction Catalysts
Securing full project financing remains Aspire’s top priority for 2026, with ongoing due diligence on Sinosure-backed vendor financing and active engagement with multiple financiers. The company aims to commence contractor mobilisation for CHPP and ERT construction in Q2 2026, finalise the Murun–Uliastai Highway PPP agreement, and progress offtake negotiations toward binding sales contracts.
The combination of contracted major infrastructure, government-backed transport corridors, regained commercial rights, and a construction-ready mine site positions Aspire to advance confidently toward first coal production and export by Q4 2027.
Nonetheless, the need to secure additional funding beyond vendor financing and the finalisation of key agreements underline the uncertainties ahead. The company’s ability to navigate these will be critical to translating these milestones into operational success.
Amid firming coking coal prices and constructive market conditions, Aspire’s 2026 activities will be closely watched for signs of tangible progress beyond contractual and planning achievements.
Investors may find it instructive to compare this report with the company’s earlier announcements on the EPC contract signing and highway PPP endorsement, which laid the groundwork for these developments. For example, the company’s $70M EPC contract and highway PPP government endorsement were pivotal precursors to the current construction phase.
Similarly, the restoration of exclusive marketing rights following the Talaxis stake sale to NordSteppe was a strategic inflection point, simplifying commercial arrangements and is detailed in the company’s marketing rights regained announcement.
Bottom Line?
Aspire Mining’s 2025 achievements set a solid foundation, but financing and contract finalisations in 2026 will be decisive for its transition from promise to production.
Questions in the middle?
- Will Aspire secure the remaining project financing on terms that preserve shareholder value?
- How will the Build-Operate-Transfer highway PPP impact long-term logistics costs and operational flexibility?
- Can Aspire convert offtake discussions into binding agreements amid evolving coking coal market dynamics?