Aspire Mining Limited · ASX:AKM
Aspire Mining — Coaltrans Mongolia Conference 2013
28 slides from Aspire Mining's conference presentation, Jun 20, 2013
Slide 1: Ovoot Coking Coal Project: Overcoming Northern Mongolian Infrastructure Challenges
For personal use only Ovoot Coking Coal Project Overcoming Northern Mongolian Infrastructure Challenges Coaltrans Mongolia Conference, 19-20 June 2013 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 the date of release of this document. The information in th
Slide 3: Company Snapshot – Corporate Structure
Company Snapshot – Corporate Structure For personal use only Capital Structure (ASX:AKM) Board of Directors • David McSweeney (Non-Exec Chairman) – lawyer by training and has over Undiluted Diluted 20 years experience in the resources sector ranging from exploration to project Share Price (10 June 1
Slide 4: Significant Mongolian Coal Projects
Significant Mongolian Coal Projects For personal use only 4
Slide 5: Progress Update: The Ovoot Coking Coal Project
Progress Update For personal use only The Ovoot Coking Coal Project Aspire continues to own 100% of the Ovoot Project – the second largest coking coal Reserve in Mongolia (219Mt) Aspire received its Mining Licence Aspire receive MRAM approval for its Mongolian Feasibility Study Aspire receiv
Slide 6: Ovoot - Second Largest Coking Coal Reserve in Mongolia
Ovoot ‐ Second Largest Coking Coal Reserve in Mongolia For personal use only Mongolian Coking Coal Reserves Large 400 350 300 250 219 Mt Mt 200 139 Mt 150 122 Mt 111 Mt 100 50 0 Tavan Tolgoi: Aspire ‐ Ovoot MMC ‐ UHG SouthGobi ‐ MMC ‐ Baruun West Tankshi Ovoot Tolgoi Naran Source: Company website, C
Slide 7: Exceptional Deposit – High Washing Yield and % Coking
Exceptional Deposit – High Washing Yield and % Coking = Highest In‐Situ Value per tonne For personal use only 7
Slide 8: Ovoot Coking Coal Project: An Important Coking Coal Discovery
Ovoot Coking Coal Project For personal use only An Important Coking Coal Discovery in Northern Mongolia PFS Key Highlights • 20 year Life Ovoot Production Schedule • Producing in excess of 184 mt Marketable Coking Coal 14,000 • Producing up to 12 Mtpa 12,000 • Annual Revenue US$2 - $2.4 bn per 10,
Slide 9: Ovoot PFS Revision Financial Highlights
Ovoot PFS Revision Financial Highlights For personal use only OPEX • Average operating cost ex mine gate US$36/t for Life of Mine • Average operating cost estimated at US$115/tNote1 for Life of Mine • 0-5 Years: Average operating cost to deliver coal to China US$91/tNote1 Mine CAPEX Requirements S
Slide 10: VITROCOAL: Low Ash, High Fluidity Coking Coal
VITROCOAL Low Ash, High Fluidity Coking Coal For personal use only Indicative Ovoot Washed Coking Ovoot Coking Coal displays High fluidity and Coal Specification plastic properties Moisture 9% An ideal blend coking coal indicated by industry leading Gray-King Index and Rank Ash 9% Chinese clas
Slide 11: Chinese Blending Coal Requirements
Chinese Blending Coal Requirements For personal use only Sources: AME Group, “Coking Coal Market Outlook” presentation to Coaltrans Conference Brisbane dated August 2011 11
Slide 12: Chinese Blending Coal Requirements
Chinese Blending Coal Requirements For personal use only Chinese fat coal consumption during 2012 totalled 95Mt (total coking coal consumption 499Mt) Domestic Fat Coal Reserves are depleting, with an estimated life of 33 years “Lack of hard coking coals – …especially high fluidity” “Semi-sof
Slide 13: A Major and Important New Coal Discovery in Northern Mongolia
A Major and Important New Coal Discovery in Northern Mongolia For personal use only Carbonisation testwork has shown • Ovoot coal was able to replace up to 25% of Prime Hard Coking Coal in a blend with recycled coke breeze ‐ and improved coke quality • Ovoot coal when blended with 75% poorly caking
Slide 14: Marketing Activities Commenced with Major Asian Potential Customers
Marketing Activities Commenced with Major Asian Potential Customers For personal use only Initial discussions with North Asian coking coal end users has confirmed that Ovoot Coking Coal fits neatly into the clean fat coking coal category • Washed bulk sample being provided to interested parties for
Slide 15: Rail Infrastructure: Key to Unlocking Northern Mongolia
Rail Infrastructure Key to Unlocking Northern Mongolia For personal use only Commentary Potential Rail Route – Ovoot Coking Coal Project is 550kms (direct) from Trans‐Mongolian rail terminus – Opens up major transport corridor in Northern Mongolia (passing through Orkhon, Bulgan, Khuvsgul and Zavkha
Slide 16: Northern Railways LLC
Northern Railways LLC Subsidiary of Aspire Mining For personal use only • Focused on infrastructure to connect Ovoot to Erdenet • Stand alone Special Purpose Vehicle to: - Apply for BOOT (Build Own Operate Transfer) rail concession - Manage EPC contractors - Raise required funds through issuing debt
Slide 17: Rail Development Progress Update
Rail Development Progress Update For personal use only Northern Rail Line Completed Pre‐Feasibility Study, and received confirmation of technical design standards by Mongolian Rail Authority Granted a General Environmental and Impact Assessment (GEIA) Completed Revised Pre‐Feasibility on alter
Slide 18: Why Northern Mongolia Needs Infrastructure
Why Northern Mongolia Needs Infrastructure For personal use only Northern Mongolian Economies would benefit from Railway to support the development of sustainable agricultural and manufacturing industry growth Mongolia Khuvsgul Bulgan Zavkhan Human Development Index 0.778 0.709 0.770 0.731 Life expe
Slide 19: Lack of Industry Development = Lag in Economic Growth
Lack of Industry Development = Lag in Economic Growth For personal use only 4000 Comparison Northern Mongolian GDP per • Railway will improve margins for Herders and Capita Farmers by reducing travel time, transport 3500 costs, and price received for goods. 3000 • Railway will promote the developmen
Slide 20: Dependence on Nature = Volatile Employment
Dependence on Nature = Volatile Employment For personal use only 35 Unemployment Rate The creation of jobs for employment in: - Railway construction and operation 30 National Avg. - Manufacturing industry (clothing, textiles Zavkhan accommodation, food, construction Unemployment Rate (%) 25 material
Slide 21: Permanent Infrastructure to Benefit Mongolia for Long Term
Permanent Infrastructure to Benefit Mongolia for Long Term For personal use only Rail Infrastructure: US$1,300 million Mine Costs Costs of the Permanent 30% 70% Infrastructure for Mongolia Minesite: US$565 million Note: Costs do not include contingencies as detailed in the Pre-Feasibility Study Anno
Slide 22: Infrastructure is Proven to Support Sustainable Industry Development
Infrastructure is Proven to Support Sustainable Industry Development and Growth For personal use only 12000 Camparison Northern Mongolian GDP per • Orkhon province enjoys access to rail and Capita has a thriving manufacturing industry 10000 producing: - food & beverages 8000 - carpet Aimag GDP US$ p
Slide 23: Ovoot Coking Coal Project: An Important New Coking Coal Project
Ovoot Coking Coal Project: An Important New Coking Coal Project in Northern Mongolia For personal use only Erdenet – Ovoot Railway Supports the Improves Access Support Tourism & Development of and Costs for sustainable Employment a World Class Herders and manufacturing Coking Coal Farmers to end ind
Slide 24: Potential Routes to Coal Markets – Rail Access
Potential Routes to Coal Markets – Rail Access For personal use only Asian Importers of Metallurgical Coal: Japan 71.5Mt1 Korea 25.8Mt1 Taiwan 5.5Mt1 102.6Mt Russian total Metallurgical Coal Exports to Asian markets (incl. China): 7.6Mt1 1. Source: TEX Report, 2012 data. 24
Slide 25: Potential Railway Financiers – Sources of Debt & Equity
Potential Railway Financiers – Sources of Debt & Equity For personal use only Development Commercial Bilateral Banks Banks Agencies Multilaterals ECAs DEBT NORTHERN RAILWAYS LLC EPC Contractor EQUITY Multilaterals Coal Customers Infrastructure Strategic Developers Partners 25
Slide 26: Steps to Develop the Ovoot Project
Steps to Develop the Ovoot Project For personal use only Focus Areas over coming 12 months Rail Progress Bankable Feasibility Study for Railway Complete Environmental Impact Assessments on western portion of the Rail alignment Rail concession and approvals EPC Contract Discussion Rail Fina
Slide 27: 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 28: 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