Aspire Mining, a Mongolia-focused coal explorer and infrastructure development company, has received an expression of interest from China Development Bank (CDB) to fund up to 75% of the EPC contract cost to build the Erdenet-to-Ovoot Railway in northern Mongolia.
Originally planned to connect Aspire’s metallurgical coal projects to Mongolia’s existing rail infrastructure, the Erdenet-to-Ovoot line was recently included in plans for a Northern Rail Corridor, which would join Chinese and Russian rail networks via Mongolia.
A 30 year rail concession was granted to Aspire’s rail subsidiary Northern Railways LLC in August 2015 by the Mongolian government to progress the development of the railway.
“The CDB expression of interest confirms that, subject to CDB being satisfied with the first stage of the bankable feasibility study for the Erdenet-to-Ovoot Railway, CDB intends to provide a non-binding term sheet in relation to the provision of a long-term debt facility to Northern Railways to fund up to 75% of the EPC contract cost of that project,” Aspire said in an ASX release.
CDB is a Chinese state-owned policy financial institution that provides medium to long-term financing facilities that serve China’s long-term economic and social development strategies.
Edited by Jonathan Rowland.