Mongolian metallurgical coal explorer and infrastructure company, Aspire Mining Ltd has announced that the Ekhgoviin Chuluu Joint Venture (ECJV), tenement holder of the Nuurstei metallurgical coal project, has executed an offtake agreement with joint venture partner, Noble Group.
The ECJV owns 90% of the Nuurstei project. The ECJV is 50% owned by Aspire and 50% by Noble Group with Aspire having the right to 30 June 2017 to acquire the Noble Group interest for US$1million and a future royalty.
Noble is currently a large exporter of Mongolian coals into Chinese markets facilitating transport through to end customers.
The offtake agreement covers the first six months of anticipated production in 2018 from the Nuurstei project and notes a specification and penalty regime. The point-of-sale will be on the Chinese side of the border at Erlian. Pricing is to be agreed closer to first delivery.
A 400 kg bulk sample of raw coal is currently being transported to toll washing facilities in China to produce washed hard coking coal marketing samples.
Noble Group has previously noted that Nuurstei project coal will attract significant demand and that over time, the coal will have a pricing advantage over Chinese domestic competitors on a delivered-to-end-user basis.
Aspire’s Managing Director, David Paull, said: “the offtake agreement with Noble Group is an important step in the continuing commercialisation of the Nuurstei coking coal project”.