Aspire Mining awards FEED study preparation contract for Ovoot Coal Handling and Preparation Plant to CIMIC Group’s Sedgman

Aspire Mining Ltd (ASX:AKM) (FRA:WKU) has awarded a contract for the preparation of a front end engineering and design (FEED) study on Coal Handling and Preparation Plant (CHPP) infrastructure in Mongolia to CIMIC Group Ltd’s (ASX:CIM) (FRA:WKU) wholly-owned minerals processing company, Sedgman Pty Limited.  The FEED study will support the commencement of operations at the wholly-owned Ovoot Coking Coal Project (OCCP) in the Khuvsgul aimag (province) of northwestern Mongolia. Innovative solution Sedgman managing director Grant Fraser said: “Sedgman appreciated the opportunity to work with Aspire and is focused on delivering value through progressing an innovative solution for the project. ”This study is a great opportunity to work with one of our longstanding clients to support the future development of the OCCP. FEED study The FEED Study will be conducted in a phased approach over a period of around five months. Stage 1 will comprise trade-off analyses to identify the most appropriate concepts and technologies, which will take about eight weeks, and Stage 2 will then focus on the agreed path and will produce accurate estimates of capital and operating costs and designs to enable tendering for construction. This work will be completed under a schedule of rates arrangement, with the total cost estimated at A$600,000. The intended CHPP infrastructure to be investigated will be based on existing modular designs and will enable low impact processing of approximately 1.5 million tonnes per annum of run-of-mine (ROM) coal with capability for later expansion. Important criteria for the design include low energy and water consumption, and stringent dust control. Export credit finance Aspire will work with Sedgman on identifying opportunities for the CHPP infrastructure construction to qualify for export credit finance assistance. Despite ongoing difficulties in Khuvsgul and Mongolia in general as a result of COVID-19 infections and control measures, the company continues to progress engineering, permitting and financing work on road, rail terminal, equipment and other infrastructure. Sedgman Sedgman is an industry leader in the fields of design, construction, commissioning and operations of minerals processing facilities. It has provided technical input and various studies supporting the economics of the OCCP from discovery of the deposit in 2010. It also has Mongolian-specific experience and plans to draw from this experience and engage local Mongolian subcontractor(s) to deliver the FEED Study with appropriate consideration of in-country requirements.