The working group comprises representatives from the ministries of roads and transportation, environment, finance and the investment agency.

Aspire’s Northern Railways subsidiary is now negotiating to establish a rail concession to construct the railway, getting its coking coal from the mine at Ovoort to the Trans-Mongolian Railway connection at Erdenet.

Aspire needs to submit draft agreements to the Mongolian government.

In order to support the granting of the concession agreement to Aspire the company has entered into a consortium agreement with a China Railways Construction Corporation subsidiary for an exclusive licence to use patented intellectual properties which will be required to design and construct the railway.

Aspire managing director David Paull said it was an exciting period for the company.

“It is also of great benefit for a junior ASX-listed company such as Aspire to have the full technical and engineering weight of China Railways 20 Bureau Group Corporation behind it to support the negotiations for a rail concession with the Mongolian Government.”

Aspire completed its pre-feasibility study in 2012. It is aiming to establish a five million tonne per annum mining project by 2019, but it needs to finalise its rail concession this year.

The 547km railway will be a multi-user rail line available for the transport of bulk materials, agricultural and general freight and passengers from the region to export markets including China, Russia and seaborne markets.