Aspire Mining focuses on advancing site engineering and logistics solutions at Ovoot Coking Coal Project as it sits out COVID-19 lockdown in Mongolia

Aspire Mining Ltd (ASX:AKM) (FRA:WKU) has focused on advancing site engineering and logistics solutions for its Ovoot Coking Coal Project in Mongolia as it sits out the COVID-19 pandemic lockdown. The company remains confident that the local community is supportive of mine development and is awaiting the first opportunity to reconvene a meeting required to present its detailed environmental impact assessment (DEIA) for comment and acceptance.  The final draft of the report has been completed but there is a regulatory requirement for consultation with and approval by the local community before it can be submitted to the Ministry of Nature, Environment and Tourism (MNET) for final approval.  A planned community meeting on March 15, 2021, to present the DEIA to the local community was unable to proceed following the detection of COVID-19 infections in Khuvsgul aimag and the reintroduction of restrictions on public gatherings. The Ovoot Coking Coal Project contains a JORC 2012-compliant total coal reserve of 255 million tonnes of high quality (fat) coking coal, which can be used to blend with other coking coals to produce coke, an essential component of producing steel using the blast furnace production route. This type of coal is in increasing demand in China, Mongolia's southern neighbour, particularly as China's relationship with Australia is strained which impacts the amount of coal imported from Australia.  CHPP and ERT Infrastructure FEED Studies During the March quarter, the company received eight proposals in relation to conducting a FEED study on CHPP infrastructure and five proposals on conducting a FEED study on ERT infrastructure. The vendors, who submitted these proposals, included reputable and experienced firms from Mongolia, Europe, China and Australia, as well as combined national-international consortium submissions. At the end of the quarter, the evaluation process to select vendors to complete both FEEDsStudies was in progress and a separate announcement will be made on the award of these contracts in the current quarter. Tractor performance simulation As correct tractor selection is a critical aspect to minimise transportation unit costs, a leading Australian logistics engineering specialist is evaluating the performance of various potential tractors to be utilised across the intended route between the mine and rail terminal. Key areas of focus include determining the maximum gross combination weight that each tractor can pull across the route within the target timeframes and the expected fuel consumption. For each tractor, key configuration details such as final drive ratios are also being investigated. Output from the study will also be used as input into trailer design (targeting payload efficiency via optimising trailer combination within defined maximum gross combination masses) and final road design (where trade-off between road capital costs and transportation operating costs can be made). COVID-19 response Having avoided community transmission of COVID-19 until late in 2020, Mongolia is now battling the significant spread of COVID-19 infections with high case numbers, with Tsetserleg soum, Khuvsgul aimag, officially confirming its first cases of COVID-19 on March 11, 2021. As of April 29, 2021, a total of 34,623 cases and 96 deaths have been recorded in Mongolia, with new infections surpassing 1,300 per day, with lockdown measures implemented nationwide to curb the wave of infections. In response, Aspire Mining delivered equipment to Tsetserleg soum hospital on March 28, 2021, to support COVID-19 prevention and detection measures, including protective clothing, sanitiser, surgical gloves and COVID-19 rapid test kits. As part of COVID-19 control measures, the Tsetserleg soum and Khuvsgul aimag are currently prohibiting entry of non-residents to their respective territories. The Tsetserleg soum local government has set up a system of on-duty officers to guard the entrance posts at all four entrance/exits to the soum. Aspire Mining’s information officers have volunteered to guard one of the soum entrance/exit posts from April 13, 2021. Strengthening coking coal price The index price for Tianjin washed Mongolia coking coal continued strengthening from the end of the second quarter of financial year 2021 highs through and into the March quarter. During the March quarter, prices for Mongolian coal delivered into China remained strong due to: The continued deterioration of Beijing-Canberra relations impacting the volume of coal imported from Australia; The continued strength in the Chinese domestic steel industry driven by China’s post-COVID-19 recovery stimulus; and As a consequence of export volumes being restricted following control measures implemented by China to limit transmission of COVID-19 from Mongolia to China. International Forest Day In support of the International Day of Forests on March 21, the company partnered with the National University of Mongolia (NUM) and Creative Motion LLC to promote events for local community stakeholders and national scientific scholars to raise awareness of the importance of forests, their restoration and management, and it will help address climate change and the biodiversity crises. The company supported the following main activities: Sponsor a student research conference on ‘Tree Sprouts’ organised by the NUM School of Forestry under the 5th Annual Conference of Forestry, with assistance from the MNET.  Due to COVID-19 restrictions, the conference was held online on March 5, 2021; Sponsored a Facebook account to celebrate International Forest Day in partnership with Creative Motion. As part of this initiative, a series of professional posters was developed to raise awareness and videos featuring interviews with scholars from the NUM and Academy of Science scientists were developed to increase public awareness; and A thematic visual art drawing competition titled: 'If I were a Forest' was organised among high school and middle school students in Murun soum, Khuvsgul aimag to allow students to express their ideas and findings visually. Finance As of March 31, 2021, the company had $34.7 million (US$26.4 million) in cash and term deposits.