Aspire Mining Limited · ASX:AKM
Aspire Mining — Discover Mongolia Conference 2012
25 slides from Aspire Mining's conference presentation, Aug 30, 2012
Slide 1: Putting the North on the Map
For personal use only Putting the North on the Map Presentation to Discover Mongolia Conference, Ulaanbaatar 30 August 2012 June 2010 1
Slide 2: Important Information
Important Information For personal use only •Nature of this document: This document has been prepared by Aspire Mining Limited (“Aspire”, “AKM”, or the “Company”) and contains summary information about the Company and its subsidiaries as at 30 August 2012. The information in this document does not s
Slide 3: Mongolia
For personal use only Mongolia 3
Slide 4: Northern Aimag
For personal use only Northern Aimag 4
Slide 5: Current Investment on Infrastructure
Current Investment on Infrastructure For personal use only $100m $75m 2012-2014 Zavkhan sealing of Power road from Station Unt to Moron 5
Slide 6: Population Density by Aimag
Population Density by Aimag For personal use only Source: 2010 data sourced from 2010 Mongolian Statistical Yearbook 2010, National Statistic Office of Mongolia 6
Slide 7: The North is Missing Out on the Mining Boom
The North is Missing Out on the Mining Boom For personal use only The North has not seen the benefits of Mongolia’s Resource driven economic growth: Mongolia Khuvsgul Bulgan Arkhangai Zavkhan Human Development 0.763 0.685 0.739 0.722 0.700 Index Life expectancy 0.718 0.644 0.739 0.711 0.689 Index Ed
Slide 8: The North is Missing Out on the Mining Boom (cont.)
The North is Missing Out on the Mining Boom (cont.) For personal use only 18 Unemployment 2500 Gross Domestic Product (per capita)1 16 2000 14 Aimag GDP US$ per capita Unemployment Rate (%) 12 1500 10 8 1000 Zavkhan 6 Khuvsgul National Avg. Arkhangai Zavkhan Bulgan 4 Khuvsgul 500 National Arkhangai
Slide 9: Economic Gap Is Growing
Economic Gap Is Growing For personal use only Mongolian economy is forecast to grow more than 10 times by 2025 In 2025 • GDP per capita In 2016 USD 20,000 • GDP per capita USD 11,290 2011 • GDP per capita USD 3,600 Northern Aimag’s Economic Growth ? Khuvsgul GDP per capita US$ ? Source: Mongolian Go
Slide 10: Structure of Economy
Structure of Economy For personal use only Khuvsgul Bulgan Mongolia 17.3% 22.8% Agriculture 4.0% Agriculture 4.2% Government Spending Government Spending Other 78.7% Other 73.0% 15.9% 22.7% Agriculture Government Spending Other 24.1% 37.3% Resources Arkhangai Zavkhan 18.5% 27.9% 3.9% Agriculture Agr
Slide 11: Khuvsgul Industry Development Plan
Khuvsgul Industry Development Plan For personal use only • Rail to increase size and scale of Tourism and Agricultural industries • Rail to benefit Mogoin Gol Coal Mine, 51% owned by the Khuvsgul Province • Rail rather than Road will be environmentally more sustainable • Increase Mongolian Competiti
Slide 12: Resources to Directly Benefit Regions
Resources to Directly Benefit Regions For personal use only 2006 Minerals Law - Royalty Breakdown (Article 58 of the 2006 Minerals Law of Mongolia) • 10% Tsetserleg soum • 20% Khuvsgul Aimag • 70% National Budget The Ovoot Coking Coal Project alone could drive Khusvgul GDP average consistent with th
Slide 13: Livestock Herders can benefit from Rail
Livestock Herders can benefit from Rail For personal use only • Aspire to support bloodline regeneration • Fund Feasibility Study into a cooperatively owned abattoir at Moron including transport options • Rail access to export markets reduces transport costs by two thirds, improves feed security and
Slide 14: Northern Railways LLC
Northern Railways LLC (Subsidiary of Aspire Mining Limited) For personal use only • Completed PFS in Feb 2012 • Alignment already approved by MRA in March 2012, as technically feasible and consistent with Mongolian design standards: - Multi User Rail 406km Erdenet to Moron: US$1.1Bn + contingencies
Slide 15: Northern Railways LLC - Next Steps
Northern Railways LLC - Next Steps For personal use only Update PFS for Calibre Rail Review Complete rail ESIA • Initial Stakeholder Engagement meetings have indicated widespread support Submit request to Government for inclusion in Concession List and National Rail Policy Start Bankable Feasibility
Slide 16: Aspire Mining Limited
Aspire Mining Limited For personal use only Aspire is an Australia / Mongolian Partnership • 18% Mongolian ownership • Solely focussed on Mongolian coking coal Raised A$60m since February 2010 to invest in Mongolia Was the first ASX listed Company to list a Mongolian exploration assets – Many have f
Slide 17: Ovoot Coking Coal Project
Ovoot Coking Coal Project For personal use only Pre-Feasibility Study completed JORC Code compliant Coal Resource of ROM and Product Tonnes 252Mt (156Mt Measured, 70Mt Indicated, 16.0 26Mt Inferred) and open pit Probable Coal 14.0 Reserves of 178Mt (ROM 185Mt) 12.0 15 year Mine Life producing >150Mt
Slide 18: Pre Rail truck based options are being considered
Pre Rail truck based options are being considered For personal use only 1. Trucking East to Erdenet Licence to construct Ovoot – Moron Road has been granted Sealed road between Erdenet – Moron to be completed by 2014 Land for Erdenet rail siding acquired in the March 2012 Quarter 2. Trucking West to
Slide 19: Exceptional Deposit: Highest Washing Yields and % Coking
Exceptional Deposit: Highest Washing Yields and % Coking = Highest In-Situ Value For personal use only 19
Slide 20: Ovoot Indicative Product Quality Compliments other Mongolian Coking Coals
Ovoot Indicative Product Quality Compliments other Mongolian Coking Coals For personal use only Yield Ash Volatiles CSN Sulphur % % % % Indicative Washed 82 9.5 25 - 28 8-9 1 Coal Quality • Air dried basis • ISO Coal Classification: Medium Rank B, high vitrinite, low ash, coking coal • Vitrinite lev
Slide 21: Unlocking the Value of Northern Mongolia
Unlocking the Value of Northern Mongolia Potential Routes to Export Markets through Rail Access For personal use only Ovoot – Erdenet Rail could potentially link with Stage 3 Western Rail Link Northern Mongolia could access: - Russian and Eastern European markets - Eastern as well as Western Chinese
Slide 22: Foreign Investment Review Laws
Foreign Investment Review Laws For personal use only New Foreign Investment Law – May 2012 • Requires Parliamentary approval for SOE Investment • Requires Government of Mongolia approval above 33% and; • Requires Mongolian Parliamentary approval if more than 49% • The Foreign Investment Law: • Does
Slide 23: ....But the World Doesn't Believe It
….But the World Doesn’t Believe It For personal use only Source: UBS 23
Slide 24: Competent Person Statement
Competent Person Statement For personal use only Competent Persons Statement In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the JORC Compliant Coal Reserves and JORC Compliant Coal Resource for the Ovoot Cok
Slide 25: Contact details
Contact details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco, Western Australia, 6008 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave-8 Social Insurance Department Building A