The Ovoot Coking Coal Project is Aspire’s launchpad to becoming a leading high-quality coking coal supplier. Backed by solid economics, smart transport strategies, and strong community benefits, it’s ready to make a significant mark on the global coking coal market.
Overview
The Ovoot Coking Coal Project (OCCP), wholly owned by Aspire, is based upon extraction of high quality ‘fat’ coking coal from mining license MV-017098, which is situated in Tsetserleg soum (district) of Khuvsgul aimag (province) in northwestern Mongolia.
Key Facts
| Ovoot Coking Coal Project | |
| Ownership | Aspire has a 100% interest in Ovoot |
| Status | PFS complete, ITR due Q4 CY24 |
| Expected product | Premium ‘fat’ coking coal |
| Targeted construction start | H1 CY25 |
| License expiration | August 2042 (extendable twice by 20 year periods) |
| Total JORC Resource | 219.4 Mt |
| Total JORC Reserve | 130.1 Mt |
A Project of Considerable Scale
Coal Resource and Coal Reserve Estimates
The Ovoot Coking Coal Project boasts significant estimated JORC (2012) compliant Coal Resources and Coal Reserves. In the context of other global deposits, these substantial Coal Resources and Coal Reserves place it among the top-tier coking coal projects.
Total Coal Resource of 219.4 million tonnes (Mt) has been estimated as at 30 October 2024, including 99.5 Mt Measured, 100.9 Mt Indicated, and 19.0 Mt Inferred.
Total Coal Reserve of 130.1 Mt has been estimated as at 13 November 2024, on an assumed Run-of-Mine (ROM) moisture basis of 2.9% as received (ar), comprising 76.8 Mt Proved and 53.3 Mt Probable.The technical information and competent persons statements for the Ovoot Coal Reserves and Resources are reported in the Company’s ASX announcement dated 22 November 2014 (Ovoot Coal Resources and Reserves Updated).
Premium ‘Fat’ Coking Coal
Indicative Product Specification
Washed coal from Ovoot is expected to be classified as an FM36 Metabitumnous coal in accordance with Chinese standard GB/T 5751-2009 ‘Chinese classification of coals’ and GB/T 397-2022 ‘Commercial Coal Quality — Coal For Coke Making’, as confirmed by SGS-CSTC Standards Technical Services (Tianjin) Co., Ltd. (refer to ASX Announcement dated 11 January 2024) and Fenwei Digital Information Technology Co., Ltd. (refer to ASX Announcement dated 30 April 2024).
This classification means that it is a premium product within the highest category of ‘fat’ coking coals, which is highly sought after by coke producers for its high fluidity, wide plastic range, and other unique coking properties. This quality of coal is so unique that according to Chinese standard GB/T 26128-2010 ‘Classification and utilization of scarce and special coal resources’, it is also considered as a Scarce Coking Coal, for which there is concerted effort to utilise it to facilitate overall available coal resource utilisation efficiency.
Highly Sought-After Product
Demand for Ovoot Product:
- Increased global demand for high quality coking coal, combined with underinvestment in new supply, presents significant opportunities for Aspire.
- The coal from Ovoot is highly sought after in the prospective target market regions of Hebei, Inner Mongolia, Liaoning, Heilongjiang, and Jilin provinces in China. Supply shortfalls of washed, fat coking coals in these regions are currently approximately 15 Mtpa and this shortfall is projected to increase to 18 Mt by 2029.
- Meanwhile, average prices for coal of the specification expected from the Ovoot Coking Coal Project delivered to Erlian port in Inner Mongolia are forecast to remain high.
- The ‘Value in Use’ of the Ovoot coal also supports future exports targeting seaborne markets, including to India with whom Mongolian maintains favorable diplomatic relations, who will contribute almost 50% of global export metallurgical coal demand by 2050.
Strategically Located Proximal to End Markets
Ovoot is well-positioned to provide high-quality ‘fat’ coking coal via road and rail connections to meet significant market demand in northern and northeastern China. The value of the unique ‘fat’ coking coal will enable the product to also be sold further afield, and into seaborne markets.
To deliver coal onto rail, approximately 190 km of new paved highway will be constructed between the Ovoot mining license and the city of Murun, from where existing public highway will enable haulage of washed coking coal product to a bespoke coal transloading rail terminal to be constructed nearby the city of Erdenet. This new paved highway will be constructed along the existing but unpaved Murun – Uliastai state road alignment, and will be constructed compliant with Mongolian standards for inter-city public highways providing benefits to resident personnel and businesses. Product haulage from Ovoot to Erdenet will be performed using modern, fuel-efficient, low-emission trucks with axle loads compliant with Mongolian traffic safety rules for public roads.
Pathway to Production
Progress and Future Plans
AspirAspire has made substantial progress in securing the major regulatory approvals and permissions required to commence construction of the Ovoot Coking Coal Project. We remain on track to advance the project to construction in 2025, with coal production then able to commence in 2026.
Near-term, low-cost premium coking coal production from the world class Ovoot Coking Coal Project in Mongolia
