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.
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Source: Coal Guru