Aspire Mining (ASX:AKM) has revealed the results of its study on building its own railway to connect its Ovoot project with Kyzyl, a city in Russia. According to the company’s calculations the railway will cost approximately $1.25B for a total length of approximately 550 kilometers. Firstly, Aspire would connect its Ovoot project with the city of Arts Suuri which is located at the Russian-Mongolian border.
A second raillink will also be necessary to connect Arts Suuri with the city of Kyzyl in Russia, unlocking access to a potential market for Aspire’s metallurgical coal. However, funding will remain the main issue here because even though Mongolia is serious about building out its ‘economic corridor’, it won’t be easy to find $1B+ in funding unless its Chinese partners are stepping up the plate.
Disclosure: The author holds no position in Aspire Mining. Please see our disclaimer for current positions.