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Aspire Mining (ASX:AKM) has announced the approval of the Detailed Environmental Impact Assessment (DEIA) for the construction of a public road for its wholly owned Ovoot Coking Coal Project in Northwest Mongolia.
The news spiked the company’s share price nearly 15 per cent to 19 cents in morning trade.
The approval from the Professional Council of the Ministry of Nature, Environment and Tourism (MNET) ensured that the road met Mongolian requirements for public highways between provincial capital cities, with a significant portion intended to integrate into the national highway network upon completion.
“With all major approvals in place, we can formally commence project financing works. Behind the scenes, we have been busy progressing updated JORC Resource & Reserve estimates, an Independent Technical Report with updated project economics, and undertaking target market analysis,” Aspire Mining CEO Sam Bowles said.
“I look forward to updating the market on these developments in due course. I’m incredibly excited about the opportunity ahead and look forward to keeping shareholders updated as we rapidly advance development of the Ovoot Project.”
The trucks planned for hauling coal from the OCCP will be supplied by top-tier original equipment manufacturers and compliant with modern international standards, meeting statutory requirements in Mongolia.
Additionally, the road will also be for public use delivering tangible benefits to the host communities along the route, improving transportation whilst supporting the agricultural and tourism industries.
Development of the road will protect and improve the environment in Khuvsgul
aimag (province), preventing the environmental damage that is currently being
caused by public traffic across unformed roads.
Additionally, the new road will provide improved connection from the western aimags of Mongolia with Erdenet, Mongolia’s second-largest city.
Improved transportation in the region will assist the economy of Khuvsgul, which heavily depends on agriculture and tourism, by lowering the cost of imported goods, enhancing the competitiveness of exported goods, and facilitating better access to health and education services.
AKM last traded at 19.5 cents.
