Aspire Mining Ltd, which is actively developing projects in Mongolia with stakes in both coal mining and railway projects in the north of the country, has announced it is working with China Railways Bureau 20 Group toward a debt facility to fund pre-development rail activities.
Aspire’s Mongolian rail infrastructure subsidiary, Northern Railways LLC is working with nominated EPC contractor and consortium partner China Railways Construction Bureau 20 Group source to source bridge funding from a Chinese bank.
The proposed funding is a line of credit to enable completion of all pre-development activities required under the Erdenet to Ovoot Rail Concession Agreement. The credit facility would allow the completion of a rail bankable feasibility study, environmental permitting and completion of a number of commercial agreements including the EPC and debt refinance.
The line of credit is intended to be supported by guarantees from Construction Contractors and Aspire.
“With the continued support of the Mongolian Government, CRCB20G and now with the support of UBTZ, the Erdenet to Ovoot to Arts Suuri railway continues to progress as a viable inclusion in Mongolia’s economic corridor between China and Russia,” Aspire’s managing director, David Paull said.
The rail project spans 547 km and forms part of Mongolia’s Rail Policy to provide rail access to its northern provinces through the extension of its existing rail network from Erdenet to Ovoot to the Russian/Mongolian border at Arts Suuri with a Russian connection planned to Kyzyl.
Aspire thus agreed with Mongolia’s Ulaanbaatar Railway Corporation (UBTZ) to establish a working group to work through the technical and commercial issues in connecting the Erdenet to Ovoot Railway onto the existing Mongolian rail network operated by UBTZ and the operational management of the Northern Railway.
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