Aspire Mining (ASX:AKM) has outlined that it has received confirmation from Mongolia’s National Development Agency that it has approved an 18 month extension to the time required to complete the conditions precedent for the Erdenet to Ovoot Rail Concession Agreement.
These activities include completion of feasibility studies, environmental studies and permits, land use agreements, commercial agreements including the EPC Contract and its funding.
Northern Railways, a wholly-owned subsidiary of Aspire, now has until August 2018 to complete all the conditions precedent for the Erdenet to Ovoot Railway.
The Mongolian Cabinet also approved a submission from Northern Railways to alter the alignment as it approached Erdenet to avoid a potential overlap with other infrastructure.
This opened the way for approval for the extension in accordance with the Rail Concession Agreement.
Engineering work performed as part of the submission shows that the alternative alignment does not add to the capital or operating costs of the Erdenet to Ovoot Railway.
Aspire is the largest coal tenement holder in Mongolia’s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets.
Aspire is the 100% owner of the world class Ovoot Coking Coal Project, which is the second largest coking coal project by reserves in Mongolia.