Two stage development flagged at Ovoot: "PERTH (miningweekly.com) - A prefeasibility study into ASX-listed Aspire Mining’s Ovoot coking coal project, in Mongolia, has confirmed the project economics, the company said on Friday.
The prefeasibility study suggests that the project would be developed over two stages, with stage one requiring a capital expenditure of $565-million to produce some six-million tons of saleable coal from 2016.
The stage two mining capital expenditure would amount to $710-million, and would increase production to 12-million tons a year, from 2018.
Aspire said that the staged development would de-risk the production ramp-up and would enable stage one operational cash flow to underpin a future rail spur line connection from the Ovoot project to a multi-user rail line at Moron.
The rail spur line would facilitate the targeted full-scale 12-million ton a year coking coal operation.
The prefeasibility study was modeled on a probable coal reserve of 178-million tons, making Ovoot the third-largest coking coal deposit in Mongolia. The study was based on an openpit mine capable of delivering up to 15-million tons a year of raw coal to a coal handling and preparation plant, over a 15-year life of mine."
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