Developments on Nuurstei Coking Coal Project by Aspire and Noble Mining Companies
Aspire Mining, ASX listed company agreed to make alliance with Noble Group by signing an agreement to buy 50 percent share in the Ekhgoviin Chuluu Joint Venture (ECJV), which has a 60 percent share in the Nuurstei Coking Coal Project in northern Mongolia. According to the agreement signed, the project will be bought from Xanadu Mines at a reasonable rate and the remaining fifty percent will be held by Noble.
ULAN BATOR (Scrap Monster): Aspire Mining, ASX listed company agreed to make alliance with Noble Group by signing an agreement to buy 50 percent share in the Ekhgoviin Chuluu Joint Venture (ECJV), which has a 60 percent share in the Nuurstei Coking Coal Project in northern Mongolia. According to the agreement signed, the project will be bought from Xanadu Mines at a reasonable rate and the remaining fifty percent will be held by Noble.
Through this ECJV agreement, Aspire will get share of about 10 million from Xanadu Mines. They agreed to conduct feasibility studies in the Nuurstei Project area, after getting the mining license from the Resource Authority of Mongolia. This proposed area contains a low volatile bitumous coal, which contain a medium to high level of ash and low sulphur content. They are also thinking about marketing and operational synergies with its Ovoot Coking Coal Project.
Managing Director David Paull said, “Aspire is very pleased to become involved in developing the Nuurstei Project in partnership with the Noble Group as we investigate the possibility of a start to production from the Nuurstei Project pre-rail. There are many potential synergies with the Ovoot Coking Coal Project, not the least of which potentially being an important initial customer for Northern Railways LLC. ”
Other Transactions
Aspire also agreed to grant an additional 5mn shares for the event regarding the 30 million tonnes of JORC compliant resources identified in the Nuurstei Project region. They will assume Xanadu’s obligation to pay further interest in the project and will also pay US$200,000 to the minority vendors in the Nuurstei Project upon the getting the Mining License.
Thus, EC Joint Venture will be holding a share of ninety percent in the project and the remaining ten percent will be carried free through to coke production. According to the agreement, Noble will keep their share of 50 percent in this joint venture together with the marketing rights over the entire Nuurstei Project production.
Noble and Aspire also agreed for another synergy for identifying a further near term Mongolian coking coal production opportunities, by agreeing on the terms on the basis of case by case. The transaction meets up with the company’s policies to explore and develop the projects on Mongolian metallurgical coal production.
About Nuurstei Coking Coal Project
Nuurstei is situated just 10km from the Khuvsgul capital city of Moron. ECJV acquire this project in mid-2011 and then onwards the project has great drilling success. Repeated test results showed that the area was rich in a low volatile bitumous coal with moderate to high ash levels and low sulphur. They also found out samples of washed coals which have significant coking properties, for that further testing is required.
The project is near by a public sealed road, which is on construction, which connects Moron to Erdenet. The trucking distance is very short to Northern Rail Line of Aspire.