New MoU signed on Erdenet to Ovoot railway project www.news.mn
Aspire Mining Ltd has entered into a new memorandum of understanding (MoU) with China Gezhouba Group International Engineering Co Ltd (CGGC). The new MoU was signed during Mongolian Prime Minister U.Khurelsuk’s official visit to China.
The Erdenet to Ovoot Railway extends 549 kilometres between the town of Erdenet and Aspire’s Ovoot Coking Coal Project, both in Mongolia.
Having delivered the draft Erdenet to Ovoot rail feasibility study in March 2018, CGGC and Northern Railways have agreed to work quickly to finalise the feasibility study by the end of May 2018. The rail feasibility is a key document for targeting project financing. CGGC will look to fund the remaining Erdenet to Ovoot Rail concession agreement pre-development work as per the previous October 2017 MoU.
However, this will be subject to receiving a guarantee that the connecting rail line will have sufficient capacity to carry the additional freight once connected. Also, that there be sufficient time to complete the remaining pre-development work and conditions precedent pursuant to the rail concession agreement.
Northern Rail will enter into an EPC contract with CGGC in November 2018 subject to construction funding being available. In August 2015, Northern Railways was granted an exclusive 30 years concession by the Mongolian government to build and operate the Erdenet to Ovoot Railway.
Published Date:2018-04-16