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Aspire Mining welcomes new Russia-Mongolia agreement lowering rail transit costs

The long-awaited intergovernmental agreement on transporting goods by rail has been signed.
a handshake
Two important positive impacts for Aspire

Aspire Mining Ltd (ASX:AKM) stands to gain from the new cooperation agreement signed between Russia and Mongolia.

The agreement allows for Mongolian sourced freight to enjoy tariff discount on transit transport for its exports through Russia for 25 years.

Notably, Mongolian coal exports will receive a 66.4% discount and container transport a 52% discount on the Russian rail system.

Read: Aspire Mining welcomes growing support for rail for its coal mine

Aspire executive chairman David Paull said: “This rail cooperation agreement has two important positive impacts for Aspire.

“The first is that it lowers rail transit costs through Russia to Far East Ports and potentially west to the Black Sea Ports to a point where it is competitive with transport costs to Northern Chinese customers, opening up a larger and more diverse customer base.

READ: Aspire Mining responds to ASX price and volume query

Paull added “The second impact is the agreement from the Mongolian Government side to cooperate to assist Russian exports south from the Russian city of Kyzyl to connect with the Erdenet – Ovoot Railway once the Northern Corridor is completed.”

Aspire is the owner of the world class Ovoot Coking Coal Project in Mongolia. The full realisation of the project is dependent on the construction of the Erdenet to Ovoot Railway.

READ: Aspire Mining feasibility study review reduces railway construction cost

The Erdenet to Ovoot Railway extends 549 kilometres between the town of Erdenet and Aspire’s Ovoot Coking Coal Project.

It forms part of the proposed Northern Rail Corridor which extends across northern Mongolia into southern Russia.

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