According to the information sourced from the Reuters agency, the Australia's Aspire Mining Limited (Aspire) has formed a strategic marketing and logistics agreement with the trading firm of Noble Group Limited (Noble) for the development of Aspire's world class Ovoot coking coal project in Mongolia, driving Aspire's shares up sharply on December 01, 2011.
Under the agreement, Noble will market at least 50 percent of the first five million tons of coking coal produced from Ovoot and will manage the logistics chains between Mongolia's third-largest city Erdenet
and end customers in respect of these sales. The agreement also includes the development of the rail link between Ovoot and Erdenet.
Shares in Aspire galloped more than 12 percent after the partnership was announced to 0.32 AUD. The stock traded as high as 1.14 AUD in April, but has been in near-steady decline ever since.
Earlier this year, Noble partnered with Australia's Xanadu Mines, which is also exploring for minerals in Mongolia alongside sector behemoths, including Rio Tinto, Xstrata and Vale.
Mongolia sits on vast quantities of mineral wealth and analysts predict it could be one of the fastest growing economies of the next decade. This month production is scheduled to start from the East Tsankhi Block of the giant Tavan Tolgoi coal mine in Umnugovi
"The strategic alliance with the Noble Group is an important step for the company as it pushes ahead with development of the Ovoot coking coal project" said the Managing Director David Paull.
Noble, which currently owns 8.3 percent of Aspire, is one of the world's largest commodity trading and logistics companies and moves coal into most major global markets.