01/12/2011 - 14:28

Aspire signs coal marketing agreement

01/12/2011 - 14:28

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Aspire Mining has signed an agreement with Hong Kong-based commodities trading house Noble Group to assist with the development of the Ovoot coking coal project in Mongolia.

The agreement covers supply chain logistics to deliver coking coal from the project to Chinese, north Asian and seaborne coal markets.

Terms of the agreement include Noble being granted marketing rights to at least 50 per cent of the first 5 million tonnes of coking coal produced at Ovoot, subject to the establishment of suitable road and rail infrastructure.

Noble currently holds an 8.3 per cent stake in Aspire.

Aspire managing director David Paull said the alliance was an important step for the company.

“As a key shareholder, Noble has long recognised the strategic significance of the Ovoot project,” Mr Paull said in a statement.

“This alliance cements our relationship with Noble and we look forward to working closely to de-risk Ovoot’s development path.

“In particular, the alliance provides a framework to confirm access and cost of various supply chains to customers in the seaborne market as well as completeing the important groundwork required to appropriately brand Ovoot coking coal as a high-value feedstock for coke plants globally.”

By the close of trade today Aspire stocks had gained nearly 9 per cent, to trade at 30.5 cents.

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