Aspire Mining Limited has lifted its production expectations for its Ovoot Coking Coal Project in Mongolia based on the latest compilation of coal washability test results.
The results confirm that theoretically a yield of 80% to produce a product with 8% ash content and CSNs of 8 to 9 making it the lowest ash coking coal product in Mongolia.
The test results analyzed over 90% of the samples that were collected in the 2010 exploration program of the company. Now the company has coking coal production projections for Ovoot Stage 2 development to 12 million tonnes per annum (tpa) from the previously believed 10.5 million tpa.
Managing Director David Paull said that the test results had positive ramifications for both capital and operating expenditure. Now Aspire Mining’s targeted annual coking coal production would position Ovoot as one of the largest coking coal mines in the world.
Mr Paull said that it was clear from the results that coal from some areas of the deposit may not need to be washed. While this will result in lower operating costs and less required coal washing capacity, it also means potentially higher committed tonnage for the proposed Ovoot to Erdenet rail line.
The company has also signed an agreement with Sedgman Limited to get help with an initial was plant scoping study. It will run coal preparation plant modeling simulations and evaluate washing plant circuit options. Aspire Mining has also appointed Wood Mackenzie as its marketing consultant.