On June 24, Australia-based, Mongolia-focused coking coal explorer Aspire Mining Limited announced that it has increased the production expectations for its wholly-owned Ovoot Coking Coal Project (Ovoot) located in northern Mongolia, based on the latest compilation of coal washability test results.
Results from recent coal washability testing confirm a very high theoretical yield of 80 percent to produce a product with eight percent ash content and CSNs (crucible swelling numbers) of eight to nine, making it potentially the lowest ash coking coal product in Mongolia.
As a consequence, Aspire has revised coking coal production projections for its Ovoot Stage 2 development to 12 million mt per year, from 10.5 million mt per year previously.
Aspire managing director David Paull said that the test results have positive ramifications for both capital and operating expenditure.
Aspire is considering a two-stage development of the Ovoot Coking Coal Project. Stage 1 is a small scale project for 0.5 to 1 million mt per year targeting a direct shipping ore operation. The study is expected to be completed in July this year. Stage 2 is based on the establishment of a railway from Ovoot through Moron to the nearest existing rail head at Erdenet and scoping study will be completed by the end of calendar year 2011.