Noble Resources funding Aspire Mining coal project in Mongolia

Noble Resources funding Aspire Mining coal project in Mongolia

Commodities trading giant Noble Group will be funding an important phase of USD2.2 billion Mongolia coal and rail project that Aspire Mining plans to develop.

According to Reuters report, Noble Resources has agreed to finance the 580 kilometer railway line which acts as a link way between Ovoot cooking coal project and Russia as well as China. The railway has the estimation cost of $1.3 billion and will require a concession from the Mongolian government before funding confirmation can be done.

In addition, Noble Group will attain an increase of 20% in marketing rights from the coal output from Ovoot, known to be the second largest coal reserves in Mongolia. Besides increasing its equity stake in Aspire from 10.1%  to 14.9%,  Noble Group might also be giving Aspire access to enter their port in Russia.

Aspire Mining MD Mr David Paull told Reuters “We have a mechanism now to access the seaborne market, which no Mongolian coal has been able to consistently access previously. So that’s important.” The Company aims to start the Ovoot coal project in 2014 with a target of 12 million tonnes of coal a year.

Director of Base Metals for Noble Resources, Mr. Rene van der Kam, will be joining us at the upcoming annual 9th Asia Mining Congress on 13-14 March held at the prestigious Marina Bay Sands. Join him and other speaker panels, delegates and industry experts and sign up today!

To know more about Asia Mining Congress 2013 program line-up, download our event brochure here. See you there!

Source: Coal Guru

 

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